Aldi discount chain to open 50 stores in South Australia, independents provide for 'unique market' 
By Alina Eacott
ABC News
Posted yesterday at 5:15pm


Discount supermarket chain Aldi may find the South Australian market "unique" to what it has experienced in the eastern states when it opens its doors in the state, industry experts say.
Key points:

    Aldi to open four stores across Adelaide next week, 50 across SA in total
    Industry experts say unlike eastern states, independents have third share in SA
    Foodland says its not concerned by new competition

Since opening in Australia in 2001 Aldi has established almost 400 stores across east coast states, carving out about an 11 per cent share in the market.

It plans to open 50 stores in South Australia.   

Australian Retailers Association executive director, Russell Zimmerman, said the make-up of supermarkets in South Australia was different to the eastern states.

"When you go to Adelaide you've really got the market cut up by one, the independents; two, Coles; and three, Woolworths, and there's about a third share in each," Mr Zimmerman said.

"Whereas on the east coast it's more 50/50 between Coles and Woolworths."

Mr Zimmerman said South Australian consumers were parochial.

"People in South Australia are very locally orientated and so they tend to like to deal with their local retailers," he said.

"So I think that might become a little bit more of a unique situation."

Aldi will open four stores on Wednesday, at Parafield Gardens, Hallett Cove, Seaford Heights and Woodcroft.   

The German chain's business model is to offer only a few options for each product, reducing store size and the number of staff needed.

Aldi also predominantly sells its own home brands.

Mr Zimmerman said that puts Aldi mainly in competition with Woolworths and Coles.

"The major supermarkets tend to buy home branded products to compete with the home brand that Aldi have in the marketplace," Mr Zimmerman said.

"Obviously prices have been reduced and there is a severe competition. That's obviously very good for the consumer."
Foodland 'not concerned' by Aldi opening in SA

Foodland Group chairman Roger Drake said his supermarkets offered a different service to Aldi.

"We're not the low, cheap, bottom end of the market," Mr Drake said.

"We're a premium market, we're about range, we're about fresh foods."

He said he was not concerned by Aldi's upcoming presence in South Australia.

"I think it definitely will affect Woolworths and Coles a lot more than it will affect Foodland," he said.

"They're chasing them down and it's almost who can get to the bottom in a hurry.

"Aldi will get a hell of a shock when they come up in stores in Adelaide. Adelaide has some of the best independents in the world ... and I think that we pride ourselves in making sure that we give that service, quality and range."

Aldi said five additional stores will open in March at Kilburn, Modbury, Noarlunga, Mount Barker and Saint Agnes.

Do all supermarkets affect the small businessman, or just Aldi supermarkets?.          

Quote:



I am sure they do... but it is one more nail in their coffin isnt it???>..they can always work longer hours though so no worries.

Not sure who pays the police here, but every grog outlet has a police officer attending checking that people have an address to consume the alcohol.

Not sure that would be in Aldis business model

cods wrote on Jan 30^th, 2016 at 8:35am:


so coles and woolies is not a nail in their coffin ?

Aldis is being sent in as the equalizer LOL

Aldi will make no difference to me. I do not buy fruit, veg & meat from supermarkets {shudder}

I stick to the Central Market and farmers markets for that.

I buy very little at supermarkets: Paris Creek full cream unhomogenised milk and yoghurt, some chocolate, the odd Kettle potato chips and sometimes some biscuits and icecream.

Jovial Monk wrote on Jan 30^th, 2016 at 11:40am:


I found that the markets are just as bad as the super markets when it comes to "fresh fruit". Often see them forklift their goods back to cold storage after the markets have closed down which explains why their oranges used to go off within a week after I bought them. They had been in cold storage for months and are not fresh like you think they are.