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Aldi prepares for $700 million WA and SA expansion

With more than 350 stores and annual sales around $5.3 billion, Aldi sales account for approximately 10% of the grocery market on Australia’s eastern seaboard.

The chain is now planning a $700 million expansion into Western Australia and South Australia. Aldi managing director, Tom Daunt, has confirmed plans to invest between $400 million and $450 million in Western Australia and between $200 million and $300 million in South Australia over the next few years.

The plans include two distribution centres to be located in Regency Park in SA and Jandakot Airport in WA. South Australian construction firm BADGE has been appointed to build a 35,000 to 40,000 square metre distribution centre capable of supplying up to 50 stores and Western Australian construction company Georgiou Group will build a 45,000 to 50,000 square metre capable of supplying as many as 100 stores. The first stores for each state are expected to open by 2016.

In WA, Australind is expected to be the first Aldi location, with 13 stores set to open by mid-2016. According to the Bunbury Herald, Aldi has confirmed plans to open up to 70 stores in the state with stores to be built at Australind, Cannington, Southern River, Halls Head, Kwinana, Rockingham, South Lake, Joondalup, Camillo, Midland, Mundaring, Ellenbrook and Mandurah.

According to Fairfax media, Mr Daunt believes Aldi’s share in SA and WA will eventually match its 10% plus share in the eastern states. “It’s taken Aldi and Costco some time to enter the market and get consumer understanding of their business model. But there’s now a taste for retail formats other than the traditional full-line supermarket,” he said.

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