Aldi is getting fancy with plans to lure people who would normally shop at Coles and Woolies.
Four trial ALDI supermarkets opened in Kallangur, Queensland, Chisholm in the ACT, McGraths Hill in NSW and Highton in Victoria, and all will have better product displays, more branded groceries, lighting, general layout and check-out.
The improvements to ambience of ALDI is expected to appeal to middle income households who would traditionally shop at Woolworths or Coles.
An ALDI Australia spokesperson told News Corp, that the German supermarket has already increased its gourmet range from 25 to 65 lines due to popularity. “ALDI plans to continue to extend the Specially Selected brand during 2015, embracing the trend towards more premium food and drink options,” he said.
Since launching in Australia in 2001, ALDI has opened 367 stores and has managed to capture 11.4 per cent of the grocery market. Aldi has plans to push into South Australia and Western Australia.
Aldi’s new products, and rising popularity, has forced Coles and Woolworths to take a look at their own home-brand products.
On the Woolies front, chief executive Grant O’Brien told stockholders earlier this month that Woolworth’s strategy is to “neutralise Coles and contain Aldi”.
“Private label, without doubt, own-label, without doubt, is an opportunity in its own right for us to do better,” O’Brien said. “Forget Aldi for a moment.”
“But it [also] presents I think a really nice way of presenting the sort of offer to counter Aldi that we need to in the marketplace.”