The aggressive and rapid expansion of German discount giant Aldi in the Australian market is causing other retailers more problems than straightforward increased competition; there is now a shortage of available sites for new stores and rents are going through the roof.
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Aldi, which entered Australia in January 2001, now operates 40 stores that are mainly situated in New South Wales. This portfolio will be increased by a further 14 stores in the next few months, two of which will be in metropolitan sites.
For the chain’s rivals, this means limited amounts of suitable space for new stores, and where space is available, extortionate rental prices.
Woolworth’s CEO Roger Corbett confirmed to the Sydney Morning Herald, that it is looking to expand its BigW format into smaller stores, however a shortage of suitable sites has so far hindered attempts.
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By GlobalData
