Aussies want another ALDI

Australians have had a taste of discount supermarket shopping – and now they want more of it, a new Canstar Blue survey has found.

As ALDI continues to roll out new supermarkets and updates existing stores across the east coast – in addition to opening dozens of stores in Western Australia and South Australia for the first time – our survey has found that the majority of shoppers are not only pleased to see the German discount retailer challenging Coles and Woolworths, but would even like to another similar chain join the competition.

The survey of just over 3,000 adults across the country found that 86% believe the presence of ALDI is good for Australian consumers, while 74% said they would like to see another discount supermarket chain open in Australia.

In addition, 82% of respondents said they would shop at a discount supermarket if one opened near to where they live.

And they may get what they’re looking for, with fellow German retailer Kaufland reportedly set to open its doors in Australia in the near future. The company behind Kaufland (The Schwarz Group) also owns Lidl – yet another discount German supermarket. Could we be about to see TWO new additions to the Aussie supermarket landscape?

When you also consider that wholesale retailer Costco is set to open its ninth and tenths giant stores in the coming year, the supermarket space could get pretty crowded, pretty quickly.

Who wants another ALDI?

Our survey found that appetite for another discount supermarket is strongest in the eastern states where ALDI already has a sizeable presence, with 88% of adults in Queensland and Victoria of the opinion that ALDI is good for Australian consumers, followed by 85% in NSW. However, this number drops to 81% in WA and 77% in SA, where ALDI began opening its first stores in 2016.

Victorians are the most keen to see another discount supermarket chain come to Australia (76%), followed by shoppers in Queensland (75%) and NSW (74%). Again, consumers in WA (66%) and SA (69%) are not so sure.

And it’s a similar story when it comes to shopping at a discount supermarket, with Queenslanders the most likely to if one opened near to where they live (85%), followed by shoppers in NSW (83%), Victoria (82%), WA (77%) and SA (76%).

The outcomes were fairly consistent across demographics, though consumers aged in their 30s were found to be marginally ahead in terms of wanting to see another discount supermarket and their eagerness to shop at one. This is in line with previous Canstar Blue research that identified adults in their 30s as the most active consumers in Australia’s ongoing supermarket price wars.

The ALDI effect

There seems little doubt that the growing presence of ALDI has helped Australian consumers to become savvier shoppers. But the secret to the chain’s success is not just cheap prices – it’s also good value for money. ALDI has become so popular because it has managed to strike a winning balance between product price and quality. It has dispelled old myths that cheap groceries mean inferior groceries.

ALDI has enjoyed unrivalled success in Canstar Blue’s customer ratings over the years, from food and drink products to household cleaners and even sunscreen. ALDI has a habit of outperforming established brands in terms of product quality, with generally cheaper prices the cherry on top. Its laundry powders are a case in point, universally praised for their value for money.

What about Kaufland and Lidl?

While Lidl would be a direct competitor to ALDI’s relatively no-frills way of doing things – though this is gradually changing with some stores now sporting more of an ‘attractive’ supermarket feel akin to Coles and Woolworths – the same probably can’t be said about Kaufland.

Kaufland is described more like a ‘general merchandise hypermarket’ than a traditional supermarket, with a more diverse range of products for sale, including electronics. Its also said to sell far more brand names than ALDI, which predominately stocks its own private labels. Lidl, on the other, would be very similar to ALDI in this repoect.

It should be noted, however, that while Kaufland has publicly revealed its intentions to open its first stores in Australia, the same is not yet true of Lidl. Whatever happens, the increased competition should be good news for Australia’s savvy supermarket shoppers.

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