Discount retailer Aldi has announced plans to open stores in Western Australia (WA) and South Australia (SA).
The German company, which first commenced operations in Australia with a store that opened in west Sydney in January 2001, has grown to 200 stores across the eastern states.
This move into less densely populated states reflects the company’s promise to continue its growth in Australia, with 90 to 110 planned stores in WA and SA announced.
The announcement presents a significant challenge to dominant supermarket retailers Coles and Woolworths. Aldi has frequently been rated as the cheapest supermarket operator by consumer groups such as Choice.
Aldi group managing director Tom Daunt expressed “delight” at the move for the company and emphasised the potential boost to the Australian economy.
“The benefits associated with Aldi’s decision to enter SA and WA will be substantial, with hundreds of millions in capital investment and over 2000 new permanent jobs.”
Aldi anticipates that it will still take “a number of years” before it commences operations in these new states, as it must first secure a warehouse site and adequate store locations.
At present a senior executive from the company has relocated from its Queensland property team to Perth to manage the acquisition of new store sites. Aldi is seeking to make a similar appointment in Adelaide.
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