The Supermarket price war appears to be heating up!
For a long time it has been either a Coles or Woolworths supermarket choice in Australia with both stores being very similar.
So it really has come down to personal preference in most households.
Until recently when the little supermarket that could, chugged in from Germany and has been giving the Australian grocery duopoly a run for it’s money!
Who is ALDI Supermarket anyway?
Aldi comes from humble beginnings, it all began in a little family store in the German town of Essen in 1913.
They became quite popular and by 1954 they had opened 50 stores in Germany.
By 1960 they had grown to a whopping 300 stores between the Ruhr Valley and Aachen in Germany, which was then divided amongst the family into ALDI North & ALDI South.
In 1983 ALDI South started selling chilled products like cheese, yoghurt & sausages, and then in 1998 incorporated frozen foods & fresh meat into their stores.
Today there are 7,000 stores across three continents. It looks like Aldi is keeping it’s customers happy!
More customers are choosing ALDI!
It appears that in recent times customers have been choosing more and more often to shop with ALDI instead of the big two chains.
Word of the big savings that can be had at Aldi is spreading and forcing Coles and Woolworths to take this newcomer to the grocery market seriously.
So what are the statistics, why are more customers choosing ALDI?
Statistics are showing that for most households the bulk of your income after housing goes towards groceries and in most cases it’s more than $200 a week ABS (Household Expenditure Survey – Australian Bureau of Statistics 2009-10).
This statistic is even higher for Families with dependent children!
So families are certainly trying to save money where they can, which is causing a real headache for our two leaders in the billion dollar grocery market.
In an average shopping basket Aldi’s aim is to be between 20-25% cheaper than Coles or Woolworths to try and entice more customers their way in the hopes that they will stay and abandon their competition.
They also try to cut costs by having less staff and having a smaller more specific range of products, usually only 1 or 2 options of the same item.
They also supply largely high margin home brand products and less branded products.
The customer response to try the new Aldi stores has prompted Coles and Woolworths to take action and offer their customers lower prices on everyday products ie Coles catchy “Down down prices are down” catch phrase, I know my kids don’t stop singing that one!
Many of their items have been lowered to match or beat those of the branded items that Aldi stock ie vegemite, tim tam’s, arnotts & Cadbury to name a few.
However we are still seeing more and more of the Aldi supermarkets popping up all over Australia.
Which is forcing Coles and Woolworths to readjust their strategies and meet customer needs and demands and be price competitive, which is a win for consumers!
In a survey of the three supermarkets it was found that on average a trolley of similar branded items Aldi came in at around $10 cheaper than Woolworths and around $15 cheaper than Coles. (Sydney Morning Herald)
Therefore it appears that there is some healthy competition going on in our supermarkets which can only leave customers grinning at the checkout!