Aldi, Coles and Woolworths have been getting a lot of attention lately, with reports that Coles and Woolworths are inventing new private label products to compete with Aldi’s cult-like status.
Aldi’s meteoric rise in popularity may show Australia’s increasing demand for cheaper alternatives to branded products OR it could be that Australians simply want different supermarket models.
It definitely demonstrates Australian’s willingness to switch retailers – regardless of nationality.
Good. We aren’t racist.
Dick Smith expressed concerns back in 2011, when Aldi was a startup in Australia, that the German company was taking away Australian freedom with lower prices. Mr. Smith was also concerned that the German supermarket was squeezing Australian farmers to the point of bankruptcy.
It could be argued that he was right BUT Aldi isn’t the only one “squeezing”…Coles was recently ordered to pay $11.25m for, in the words of Federal Court judge Michelle Gordon, “treating its suppliers in a manner not consistent with acceptable business and social standards which apply to commercial dealings”.
So it seems it is just business – knowing the balance between profit and how hard to push – Coles happened to get the balance wrong this time.
“Supermarkets are running a business” says Sam Lee, Founder & CEO of Trolley Saver. “and like all businesses they have a requirement to continually reduce costs, but that is not all supermarkets are doing”.