ALDI to continue expansion

Posted by AFN Staff Writers on 21st January 2015
ALDI to continue expansion
ALDI to continue expansion

German-owned discount supermarket chain ALDI is planning to continue expanding its presence in Australia with new stores opening in South Australia and Western Australia in the next year, and potential new stores in the eastern states in the next five years.

Australian Food News reported in November 2014 that ALDI had announced a structural adjustment to its senior leadership organisation in Australia — a move that it said would support the supermarket group’s ongoing expansion, both locally and internationally. The changes are due to take effect from 1 April 2015. As part of the changes, Tom Daunt, previously Group Managing Director for ALDI Australia, was promoted to a new role of Chief Executive Officer for ALDI Australasia.

ALDI sales in Australia are reported to be about $6 billion a year. ALDI has 367 stores in Queensland, NSW, Victoria and the ACT, and employs about 9000 people.

“We are very happy with our $6 billion,” Mr Daunt told The Australian. “There is a little bit more room to grow on the eastern seaboard and the new markets (in WA and SA) will add a greater network,” he told The Australian.

SA and WA expansion

In October 2014, Australian Food News reported the announcement by ALDI that it would begin construction work on its new distribution centres in South Australia in October 2014 and Western Australia in November 2014. The commencement of construction was the first step in ALDI’s expansion into South Australia and Western Australia, with up to 120 stores planned. ALDI Australia said the combined value of the contracts is over $100 million and will provide significant benefits and work opportunities to local contractors and businesses.

Australian Food News also reported in October 2014 that zone reforms in Victoria had paved the way for ALDI to expand its presence in that State.

ALDI opened its first stores in Australia in 2001 in New South Wales.

Mr Daunt told The Australian in today’s report that ALDI estimated that the Western Australian market could support 70 to 80 stores, and the South Australian market between 40 and 50 stores, and he said there were plans for ALDI to open around 20 new stores a year over the next three to five years on the eastern seaboard.