Supermarket chain Aldi is now more profitable than Coles and Woolworths it’s been revealed.
And if the German-based retailer keeps seeing the growth it has experienced over the past couple of years it could hit $10.6 billion in sales by 2019.
Now that’s some serious growth, so why is Aldi so popular with shoppers?
Well it’s prices are around 20 – 30 per cent cheaper than those at Coles and Woolworths.
It’s believed both wealthier families and budget shoppers are now popping into Aldi much more frequently.
On the east coast 56 per cent of shoppers visit Aldi monthly, that’s up from 50 per cent in 2010.
According to UBS analyst, Ben Gilbert, if Aldi improve the standard of their fresh produce and address some customer service issues they’ll be closer to winning over even more shoppers.
‘Shoppers are telling us they shop with them but they don’t see them as being a place where they can do a total shop – there’s still a material opportunity for them if they can get their core offer right and fresh is the biggest opportunity.’
Aldi is expected to take over $1 billion in sales from Woolworths, Coles and Metcash each year over the next three years.
Source Sydney Morning Herald