Aldi in Conder, Australian Capital Territory. (Photo: Bidgee - CC BY 3.0)
Aldi plans to take over South Australia
(AUSTRALIA, 2/15/2013)
German supermarket chain Aldi has communicated that it intends to roll out 50 new stores in South Australia, spreading first across the suburbs in the north of Adelaide.
Viktor Jakupec, Aldi managing director, convened with John Hanlon, South Australia's Planning Department deputy chief executive, to discuss a proposed investment of AUD 300 million (USD 310.1 million) for the 50 new outlets.
"Obviously because of the growth and potential for growth in the northern suburbs (are reasons why Aldi wants to target the area) but their business plan is a statewide business plan,” Hanlon commented, The Australian reports. "Their distribution centre will be somewhere north of Adelaide and we're looking at a number of sites.”
Once a distribution centre site is chosen, the company will be able to deliver an expected timing of the first store opening, he added.
Aldi admitted that securing a warehouse site and sufficient store locations would take years, AAP reports.
"The benefits associated with Aldi's decision to enter into the South Australian market will be substantial, with hundreds of millions in capital investment, over 900 new permanent jobs and a final rollout of 40 to 50 stores across the state," declared Aldi Australia Managing Director Tom Daunt.
There are also reported new plans for expansion in West Australia involving 50 additional stores.
But some see this expansion as potentially dangerous: independent Senator Nick Xenophon believes Aldi’s entry into SA could ultimately decrease choices and service for consumers as independent operators are pushed out of the market.
The company has been running its stores in Australia since 2001 and now operates 300 outlets on the country’s eastern coast.
By Natalia Real
[email protected]
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