Construction work at the proposed Aldi site has begun. Photo Dylan Suska / The Observer
Construction work at the proposed Aldi site has begun. Photo Dylan Suska / The Observer Dylan Suska GLA200416ALDI

Aldi construction to help claw more of the market

WITH the proposed development of a Coles shopping complex at Kirkwood, it is easy to forget about the sleeping giant of the supermarket racket --- Aldi.

The fact the proposed site of the new Coles shopping complex will sit directly opposite the existing Woolworths site is testament to the ongoing war between the supermarket heavy hitters.

But according to a new study by financial analysts Morgan Stanley, Aldi is set to reach $15 billion worth of sales in 2020, making it a major challenger to the established supermarket powers.

"Aldi's customers spend just $100 over a four-week period compared with the majors at over $200," the report read.

"We think that there is an opportunity for Aldi to increase its basket size by having customers purchase more products per shop.

"Analysis of supermarket visitation and basket size trends indicates reasons for Aldi's success, [a] Coles turnaround and Woolworths demise," the report found.

Research confirmed that Aldi customers tend to start out buying staple products which they believe will have a low risk of failure.

Once these products have met expectations, they buy more, moving into other dry grocery lines and finally onto fresh food and meat.

It's this trend that researchers believe will continue to boost sales as more Aldi stores open up around the country and more customers familiarise themselves with its products.

As it stands Aldi sits fourth in sales ($6.4 billion), behind Woolworths ($42.1), Coles ($30.8) and IGA (13.2).

Soon Gladstone will have its first Aldi store which will be built on the corner of Breslin and Boles St and should shake things up for the other major supermarket players in town.

"We are pleased to confirm construction has commenced at our Gladstone site," an Aldi Australia spokesperson said. "We are currently reviewing the construction programme, with the aim of expediting this store's development."



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