Aldi to step up challenge to supermarket giants Coles and Woolies

 In Aldi, Australia, NewZealand
Discounter Aldi could almost double sales in five years, challenging the stranglehold of Coles and Woolworths over Australia’s $85 billion grocery market.
This would likely place more ­pressure on Aldi’s rivals – who are trying to defend their turf in the midst of a competition law review – to cut prices, reducing the cost of groceries but increasing pressure on suppliers. Aldi could increase sales from $5.3 billion now to $9.3 billion by 2019 by opening new stores along the east coast, attracting more customers to existing stores and expanding into Western Australia and South Australia, which it plans to do by 2016, according to a report by ­investment bank UBS.
The research is based on Aldi’s progress over the last few years and the shopping habits of more than 600 individual consumers.
If Aldi fixes problems such as lengthy checkout queues – caused by the number of customers – out-of-stock items and the quality of its fresh food, sales could reach $13 billion.
That could make Aldi a real challenger to the Woolworths-Coles duopoly.  Sydney Morning Herald – Read more…

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