With ALDI preparing a major expansion across the country in 2016, Canstar Blue research shows that Australians have overwhelmingly embraced the German discount supermarket chain – and would even like another.
ALDI is expected to open as many as 80 new supermarkets in the next 12 months, including its first stores in South and Western Australia.
At the same time, discount American retailer Costco – which charges an annual membership fee of $60 – is reportedly planning to open its ninth and tenth giant warehouses in Sydney and Melbourne respectively, as it also continues to make its mark on Australia’s $90 billion grocery sector.
And amid speculation that another German discount chain, Lidl, could soon enter the supermarket price war – as it continues to expand its portfolio of registered trademarks in Australia – Canstar Blue sought to find out how much of an appetite there really is for another no-frills place to buy groceries. And the answer is… a big one!
Our survey of 3,000 adults found that 85% agreed with the statement: “I believe the presence of ALDI is good for Australian consumers.” And not content with just one discount store, 74% said they would like to see another supermarket chain like ALDI open in Australia.
In addition, 59% of respondents agreed that they would shop at a discount supermarket store if one opened near to where they live. That number jumped to 77% in South Australia and 80% in Western Australia where the first ALDI stores are expected to open in the first quarter of 2016.
“Consumers have had a taste for cutting grocery costs and now they’re hungry for more,” said Head of Canstar Blue, Megan Doyle. “ALDI has completely changed the supermarket landscape and for many people there will be no going back.
“Even those who don’t shop at ALDI can benefit from its presence because of the way other supermarkets are reacting to the challenge. It’s helping to make us all a bit more price-conscious when we get to the checkout.
“ALDI’s success in Australia won’t have gone unnoticed by Lidl, so it seems almost inevitable that it will also set up shop here in the not too distant future. It would be crazy not to.”
The ALDI effect
A Canstar Blue study in July found that ALDI shoppers spend an average of $126 on their weekly shop. That compares to $134 for those who shop at Coles, $142 at Woolworths and $150 at IGA.
The research identified that consumers aged in their 30s are the most bargain-hungry and most likely to switch supermarkets in the search for better value. And these latest results also show that demographic has felt the ‘ALDI effect’ more than any other, with 89% agreeing that the discount chain is good for consumers and 77% keen to see another similar supermarket open its doors in Australia.
“The ALDI proposition is particularly appealing to young couples and families at a time in life when they are planning and making some of their biggest financial commitments, so the prospect of cutting grocery costs is a major draw,” said Mrs Doyle. “They are the floating voters of supermarket shopping and the most likely to take the no-frills option if it’s available. And as we know, more Australians will have an ALDI store close to them in the near future.”