Aldi sales top $8 billion with Woolies, Amazon no worry

Aldi Australia is generating sales growth of more than 10 per cent in 2017 as sales push through the $8 billion mark after a revamp of its strategy to devote more space to fresh foods. Chief executive Tom Daunt has signalled there is still room for another 100 stores in its local network. He said heavy price cutting by much larger rival Woolworths, which had invested $1 billion in cutting prices in the past 18 months to regain momentum against Coles, had had little impact on the Aldi business, which was making strong gains as its value approach was embraced by cash-strapped shoppers. Mr Daunt also said the looming opening of a local distribution business by online giant Amazon would cause no problems for Aldi, which had a substantial general merchandise offering of clothing, outdoor products and tools in its stores with its “special buys”, along with its core supermarket range of 1500 grocery product lines. “I think we’ll trade just as well with them here, as not,” Mr Daunt said.
The arrival of rival German supermarket and general merchandise operator Kaufland, which last month acquired its first site in Australia for $25 million ahead of a local roll-out, would bring extra competition into Australia, which was welcome. Aldi’s strategy in Australia wouldn’t be changing course, although he acknowledged that, in the next few years, the company would be careful not to be too aggressive in opening new stores. Aldi was poised to open its 500th store in late November at Glenmore Park in outer Sydney after arriving in Australia in 2001.
Source: www.afr.com