Aldi opens warehouse
IT will enter a market dominated by Coles and Woolworths, yet Aldi believes consumer appetite for an alternative will ensure it is a hit from the get-go.
On Wednesday, the German giant opened its 45,000sqm distribution centre in Jandakot.
The $60 million hub is now receiving stock, with the chain to open its first WA stores in Mirrabooka Square, Belmont Forum, Lakeside Joondalup and Kwinana on June 8.
Twenty stores, including one in South Lake, should be open across the state by the end of the year.
Aldi, which opened its first Australian store in 2001, has proven a hit on the east coast and enjoys a 12.1 per cent share of Australia’s supermarket space.
Woolworths leads the market with 37.3 per cent, with Coles taking 32.5 per cent. Aldi managing director Damien Scheidel was confident local consumers would take to the news guys on the block.
“We know there is a strong appetite among local residents for an alternative shopping experience and we are eager to show them the difference we can make to their wallets and their lifestyles.”
Jandakot MLA Joe Francis said shoppers would benefit, with the German company developing a “cult-like following” everywhere it goes.
“It creates significant price pressures against the big players,” he said.
“The people who benefit from that of course are the consumers who will see greater competition and choice in the retail sector.”
About 400 jobs have been created at the distribution centre, which will service up to 70 stores across WA in the long term.
An extra 800 jobs should be created once all stores are up and running.
The company will stock 1350 products, with 90 per cent of those being Aldi-exclusive brands.
Local producers should benefit, too. Last financial year, the company sold more than $80 million worth of WA grocery products and last week announced Newtown Orchards and WA Farm Direct as new suppliers.
Mr Francis said Aldi would not have been established in WA without deregulated trading hours.
“You should be able to open when you make money and shut when you don’t,” he said. “Your consumers should dictate the trading hours.”
Jandakot MLA Joe Francis and Aldi WA state manager Damien Scheidel.