Grocery Domination Or Bust As ALDI Announces Massive Aussie Profit

Grocery Domination Or Bust As ALDI Announces Massive Aussie Profit
SHARE
THIS



Coles’ and Woolies’ fears about discount retailer ALDI are fast being realised with recent revelations it has taken a much bigger bite out of the two Aussie retailers than first thought since launching in Australia in 2001.

The German-owned ALDI had come under fire from its two competitors for not disclosing its profits and how much tax it has paid on its Australian operations.

ALDI now command 11 per cent of Australia’s $90 billion food and grocery sector. And in bad news for rivals – and possibly agencies – it has announced massive expansion plans into the South Australian and West Australian markets, plus plans for new, standalone upmarket stores.

Many agencies have complained that the pricing war between the major grocers have squeezed FMCG client’s margins which has resulted in reduced ad spends.

To allay fears it’s not paying its fair share of tax in Australia, ALDI has announced that between 2010 and 2013 its sales rose from $3.14 billion to $6 billion and its Australian pre-tax earnings more than doubled from $121 million to $261 million in the same time.

Arguably, the German’s success has come at Woolies’ detriment who are suffering flatlining sales and have recently announced the departure of both its CEO and CMO. Woolworths has also been routinely beaten by arch-rivals Coles in the profit wars over recent years. To counter claims it’s the most expensive of the trio, Woolworth’s had ditched its “Fresh Food People” persona for “Cheap Cheap”with many insiders believing this has only worked to further damage the brand.

To add to Coles’ and Woolies’ woes, another budget grocer – the even cheaper German-owned chain Lidl – recently announced plans for a foray into the Australian market, although its exact plans and details remain sketchy.

In countering claims that the local operations of ALDI isn’t paying its fair share of taxes, CEO of its Australian operations, Thomas Daunt, argued that the grocer not only paid its taxes but since launching in Australia in 2001 had invested $4 billion into the local economy and had reinvested all of its profits back into its Australian operations too.

Latest News

Nine Reveals Its 2019 Line-Up, Including The Return Of SeaChange, ABBA & Lego!
  • Media

Nine Reveals Its 2019 Line-Up, Including The Return Of SeaChange, ABBA & Lego!

Nine has unveiled its 2019 line-up of shows at its gala upfronts in Sydney on Wednesday night. A mix of old and a few new, probably the biggest surprise was news that the network had snared Aussie drama SeaChange – starring Sigrid Thornton and John Howard – that was last seen on the ABC in […]

Pause Fest Hits Play On Massive 2019 Line-up & Awards
  • Media

Pause Fest Hits Play On Massive 2019 Line-up & Awards

One of the industry’s biggest events is returning in 2019 with a huge speaker line-up, incredible activations and some seriously enviable networking opportunities. That’s right, Pause Fest is back, and it’s time to hit play on your ticket buying, because this is an event you cannot afford to miss. Pause Fest is boasting talent from […]

Partner Content

by pause fest

Thinkerbell & Our Watch Ask Australians to Do Something When They Witness Sexism
  • Campaigns

Thinkerbell & Our Watch Ask Australians to Do Something When They Witness Sexism

Sexist jokes, objectifying women, off-colour comments; most people hate these all too common signs of disrespect towards women, but often they just go along with it, or don’t feel comfortable voicing their disapproval. Australia’s national body for the prevention of violence against women, Our Watch, has today launched an interactive campaign to help Australians do something when […]

Australia Post Chooses McCorkell & Associates As B2B Agency Partner
  • Marketing

Australia Post Chooses McCorkell & Associates As B2B Agency Partner

Integrated marketing agency McCorkell & Associates has been appointed by Australia Post as its primary B2B agency partner, following a four-month selection process involving seven agencies. McCorkell will work with Australia Post’s business and government B2B marketing team on marketing strategy and consulting, planning and creative services. Rebecca Burrows, general manager of segment development and […]

JWT Perth & RAC Challenge Drivers To Look Up When Driving
  • Advertising
  • Campaigns

JWT Perth & RAC Challenge Drivers To Look Up When Driving

J. Walter Thompson Perth has launched a powerful new campaign, ‘Look Up WA’, aimed at raising awareness of the dangers of mobile phone use when driving and reducing the shocking statistics of this modern-day road safety problem. In 2017, the number of deaths on WA roads linked to driver distraction doubled, accounting for one in […]

Initiative Launches Personal Pan For Pizza Hut With Customised Messages
  • Advertising
  • Media

Initiative Launches Personal Pan For Pizza Hut With Customised Messages

Pizza Hut is shaking up the QSR category this week with a new single-serve pizza supported by a counter-culture media strategy from Initiative. The new Pizza Hut Personal Pan Pizza is designed for busy people looking for a quality single-serve lunch, meaning a new twist to the convention of sharing pizza with others. To capture […]

Smooth Move For The Healthy Mummy
  • Media

Smooth Move For The Healthy Mummy

The Healthy Mummy, the biggest health and weight loss company exclusively for mums, has launched its first manufacturing plant in the UK with the production of it’s biggest selling product Aussie mums can’t get enough of, Healthy Mummy Smoothies. The Healthy Mummy range of smoothies has sold millions of tubs in Australia, has helped mums […]

Icon Agency & Acorn Strategy Create Alliance To Deliver Australia’s Expo 2020
  • Media

Icon Agency & Acorn Strategy Create Alliance To Deliver Australia’s Expo 2020

The Department of Foreign Affairs and Trade (DFAT) has appointed Icon Agency to lead the communications and marketing for Australia’s pavilion at Expo 2020 Dubai. Icon will partner with UAE-headquartered Acorn Strategy on the 2.5-year account which includes global PR duties, branding, trade marketing, events, social media and digital. The agencies will also manage day-to-day […]

Real Living Magazine Partners With The Daily Edited
  • Media

Real Living Magazine Partners With The Daily Edited

Australia’s fastest-growing Homes magazine, Real Living, this week announces a unique collaboration with popular Australian accessories label, The Daily Edited (TDE). In a one-of-a-kind partnership, the style experts at Real Living have designed and executed a stunning interiors concept within The Daily Edited’s Sydney flagship store. Revealed in the November issue, on sale now, the […]

Isobar Launches Blockchain Playbook
  • Media

Isobar Launches Blockchain Playbook

Authored by Australian Nowlab Director Robert Tilt, Isobar, has published a playbook to explain what blockchain is, the technology in practice and how it can be integrated into businesses today. The playbook unpacks blockchain’s potential impact on the global Media & Marketing industry including media supply chains, transparency, brand management and creativity, as well as […]