Aldi’s advance

Supermarket chain Aldi is catching up to industry leaders Coles and Woolworths, according to research company Roy Morgan. The German supermarket chain is renowned for its cheap prices and odd brands but it’s also charming the hearts (and winning the wallets) of Australian consumers.

Retail analysts at Morgan Stanley have predicted that Aldi could reach $15 billion in sales in just four years. Last year Aldi’s stake of the market rose from 11.6% in March to 12.1% in December, a large leap for such a short time. Meanwhile, Woolworths’ share had declined from 38.5% to 37.3%, showing the cracks in its leading position.

Source: Roy Morgan

Despite its comparatively small dollar share of the market, Aldi retains roughly half the consumers that Woolworths attracts. Aldi has a 36.8% share of total grocery buyers, which is an average of 5.3 million Australians consumers over four weeks. Roy Morgan research has also shown that the number of Australians shopping at Aldi has risen rapidly and shows no signs of slowing.

This is attributed to Aldi’s cheap prices, as Aldi is approximately 25% cheaper than Coles or Woolworths on similar products. Typical Aldi shoppers spend $100 over four weeks, whereas shoppers at Coles and Woolworths spend upward of $200.

“Australians are prepared to try a different shopping experience when they realise it can provide better value. We are proud to offer shoppers the ALDI difference and drive greater competition as the price leader in the market,” said an Aldi spokeswoman.

Source: Roy Morgan