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May 28, 2002

AUSTRALIA: Aldi’s no-frills strategy a wow with Oz shoppers – MEMBERS

Almost 18 months after setting up shop in Australia, German discounter Aldi seems to be winning over shoppers attracted by its lower prices. A report by ACNielsen found that Aldi has already won a 2.6% share of the New South Wales market despite limited penetration. In the first quarter of 2002, 13% of NSW shoppers made an average of four trips to Aldi, spending an average of A$41 (US$23) per trip (including Fresh).

18 months after setting up shop in Australia, German discounter Aldi seems to be winning over shoppers attracted by its lower prices.

A report by ACNielsen found that Aldi has already won a 2.6% share of the New South Wales market despite limited penetration. In the first quarter of 2002, 13% of NSW shoppers made an average of four trips to Aldi, spending an average of A$41 (US$23) per trip (including Fresh).

“It would seem the level of trial for Aldi is constrained only by their limited numbers of stores – as at May 2002, Aldi has 29 stores compared with 219 for Woolworths and 127 for Coles,” ACNielsen Australia marketing director Anton van den Berg said.

If Aldi continues to open more stores, it will fast become a force to be reckoned with.

Other discounters have also performed well, as the Australian populace turns to cheaper outlets in their droves. Interfrank, which acquired 50 former Franklins stores in New South Wales last year, is also giving the more established groups a run for their money. It is approaching an 8% share of the NSW supermarket sector, said Van den Berg.

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