Aldi accelerates WA and SA expansion push

Posted by AFN Staff Writers on 22nd June 2015
ALDI to continue expansion
ALDI to continue expansion

Aldi has spelt out the timing of its plans to open its first 20 new stores in South Australia and its planned new store openings in Western Australia.

According to a report in The Australian, the new stores are part of a $750 million investment plan for the German discount supermarket chain in South Australia and Western Australia.

Aldi’s first South Australian distribution at Regency Park, Adelaide will be completed by the end of 2015 and taking suppliers’ inventory by 1 February 2016.

This has been conveyed to actual and potential Aldi suppliers.

Aldi had previously announced in October 2014 that it has  plans for 50 stores in South Australia.

“Aldi continues to actively seek suitable sites and has committed to several store sites including Seaford Heights, Kilburn, Parafield Gardens, Blakeview, Hallett Cove, Woodcroft, Gilles Plains, Salisbury, Modbury, St Agnes and Noarlunga,” the supermarket announced in October 2014.

The Aldi website is currently advertising for employees in South Australia.

Aldi has almost 11 per cent of the market share and 350 storesin the eastern Australian states of NSW, Victoria and Queensland.

Aldi’s announcement of its accellerated plans comes at a time that coincides with a top management shake-out at rival supermarket group Woolworths, more on-going news of cash-dwindling financial pressures on the independents grocery sector wholesaler Metcash, and very recent news of Aldi’s arch rival German discounter supermarket group Lidl preparing to enter the Australian market.

Potential logistics change for Aldi

At the same time as Aldi’s South Australian and Western Australian plans come closer to fruition, suppliers to Aldi are reported to have been notified of a new logistics arrangement for the supply chain of fruit and vegetables to Aldi supermarkets around Australia.

It is believed that Aldi is cutting out the middle man and moving to a more direct “farm to store” model instead of using a supply chain operator for its fresh produce.