Aldi has confirmed plans to open its first stores in South Australia in February. Photo: Louise Kennerley
Discounter Aldi has broken one of the first principles of war – the importance of surprise over strategy – by telegraphing the launch date for its $300 million foray into the South Australian grocery market.
The food and general merchandise chain, which has carved out an 11 per cent share of the grocery market in NSW, Victoria and Queensland in 14 years, has confirmed plans to open its first stores in South Australia on February 3.
Aldi South Australia managing director Viktor Jakupecsaid the retailer had completed construction of a distribution centre at Regency Park which has capacity to supply up to 50 stores.
Aldi's first South Australian store managers had completed eight weeks of training at Aldi stores on the east coast and the first 150 store assistants would begin training this month.
"The completion of Aldi's distribution centre is an important step for our business," Mr Jakupec said. "We know excitement is building among South Australian shoppers and we look forward to showing them the benefits Aldi can bring both to their wallet and their lifestyle."
While Aldi has abandoned the element of surprise, it appears to favour another of Sun Tzu's principles of war – "hit him suddenly with shock troops".
The retailer expects to open 16 stores in South Australia by the end of 2016, starting in February with Seaford Heights, Parafield Gardens, Hallett Cove and Woodcroft and following in March with Modbury, Noarlunga, Mount Barker and St Agnes.
Stores are also planned for West Lakes, Hawthorn, Victor Harbor, Blakeview, Smithfield, Kilburn, Gilles Plains, Berri, Marion, Aldinga, Evanston, Nuriootpa, Golden Grove, Salisbury, Mount Gambier, Port Pirie and Yorke Peninsula.
Aldi is expected to open its first stores in Western Australia by the middle of calendar 2016, although no dates have been released.
South Australian shoppers are notoriously parochial and independent retailers supplied by wholesaler Metcash control a much higher share of the market than they do in NSW, Victoria and Queensland – more than 30 per cent compared with about 14 per cent in the eastern states.
However, analysts such as Morgan Stanley's Tom Kierath believe Aldi will snare about 5 per cent of grocery sales in South Australia within 12 months of launching, taking $500 million in sales and boosting its Australian revenues to well over $6 billion.
Once considered a niche player in the $90 billion grocery market, Aldi has become a regular shopping destination for many households.
According to Roy Morgan Research, more than 35 per cent of Australians shop at Aldi in any four-week period, while a UBS survey last year found that 52 per cent, or one in two shoppers, had visited an Aldi store in the previous month.
Metcash and IGA retailers are preparing for Aldi's arrival in South Australia and Western Australia with a grass roots campaign aimed at strengthening ties with communities and local food and grocery suppliers.
Coles and Woolworths are reducing prices, especially on house brands, to better compete with Aldi's private label range.
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