Dozens of new Aldi and Kaufland developments in SA mark the next phase of our supermarket wars
IN just two years Aldi has opened 26 supermarkets in SA and has plans for many more — while Kaufland is also moving in. The two German retail giants are changing the face of shopping in our state. SEE WHAT’S PLANNED NEAR YOU
- Aldi part of seven-storey complex to replace old Caroma factory
- Kaufland spruiks SA as ‘state of great opportunity’
THE next phase of the South Australian supermarket wars is beginning, as Aldi surges past the halfway mark of its planned $300 million spend in the state and fellow German giant Kaufland prepares to also make a big splash.
In just over two years Aldi — which stocks a mixture of discounted imported and local groceries as well as a range of products not normally found in a supermarket — has opened 26 stores in the state.
And analysis by The Advertiser reveals Aldi’s momentum is not slowing, with a large number of supermarkets either under construction or proposed, valued in total at over $140 million.
An Aldi Australia spokeswoman told The Advertiser that by the end of the year it will have opened stores in Port Pirie, Kadina and Murray Bridge — estimated to be a spend of $13.5 million — as it progresses to its long-term goal of opening 50 stores in SA.
ALDI AND KAUFLAND LOCATIONS (CURRENT AND PLANNED)
“Next year, we plan to continue our investment into South Australia, offering more local residents our unique shopping experience, unbeatable value and rewarding career opportunities,” she said.
“Aldi can also confirm new stores in locations including Newton, Port Adelaide, Blackwood and Mount Gambier.
“We are on track with our long-term expansion plans to develop up to 50 Aldi stores across South Australia, which will bring over 900 new jobs in total to the state, along with increased opportunities for local suppliers.”
Aldi’s pace of expansion has been extraordinary — not just in SA but also nationally, retail experts say.
Brian Walker from the Retail Doctor Group said it was an exciting time for the industry in SA.
“We have predicted that they will be Australia’s largest supermarket chain in terms of sheer numbers within five years,” he told The Advertiser.
“They have an extremely easy model to replicate.”
Hot on Aldi’s heels is hypermarket beast Kaufland — a warehouse-style outlet that sells products ranging from supermarket groceries to televisions, electronics and clothing — which is preparing to spend big as it arrives in the state.
Despite facing significant backlash over a bid to buy Richardson Reserve at Wynn Vale for $13.8 million, Kaufland has three proposals that have been called in by the state’s coordinator-general to be assessed by the State Commission Assessment Panel or be case-managed.
Work has started on its $23.6 million project at Prospect, while its $35 million store planned for Forestville and $23.8 million store at Munno Para await approval.
Kaufland is expected to further expand and could even prompt parent company Schwarz Group to bring its other supermarket chain Lidl — a direct competitor of Aldi in Europe — to Australia.
Mr Walker said this will happen sooner or later.
“I think so, with Kaufland it will look at the big Costco model … it will be Australia’s first true hypermarket,” he said.
“This is the globalisation of Australian retail.”
Mr Walker said the influx of foreign supermarket companies would give consumers more choice, there would be more price sensitivity than ever before and they would have more convenience.
Plympton mother and gym trainer Valerie Jones has noticed the price sensitivity.
Outside the Adelaide Airport Aldi, just 10 minutes from her home, she said she was a fan of the supermarkets’ presence in SA.
“It keeps the prices low which is good,” she said.
“But as long as local farmers don’t get ripped off, I always look for the Australian Made logo here as well.
“I just like their offering, they have things that you can’t buy at Coles and Woolworths.”
Colin Shearing chief executive of South Australian Independent Retailers — represented by the owners of Foodland, IGA and Friendly Grocer — said the arrival of Aldi had impacted Coles and Woolworths more than independent outlets.
But he said they hadn’t escaped any effects.
“It’s impacted on everyone,” he said.
“I would say more on other retailers but of course it has had an impact on the sector.
“We are very, very competitive with our offerings so we are arguably doing quite well against Aldi.
“In fact we are probably doing the best against them in terms of anywhere in the country.”
Mr Shearing said in the time Aldi had arrived on the scene, Foodland, IGA and Friendly Grocer had opened up stores in Goodwood, Wallaroo, McLaren Vale, Hampstead Gardens and refurbished a store out at Mt Barker.
“We also have expansion plans in the future,” he said.
It isn’t just the smaller boys fighting back.
Both Coles and Woolworths were quick to point out their investment in SA
A Woolworths spokeswoman said the company had invested in 27 store renewals or upgrades across the state and would continue in more stores. A Coles spokeswoman said it had invested more than $120 million in its SA store network over the past five years — including a new “market-style” supermarket in Victor Harbor.
“Victor Harbor residents will be able to enjoy an in-store bakery, open-style butchery and an extensive fresh produce section,” she said.
“The store will also feature a continental delicatessen with a variety of local and international cheeses as well as a ‘Scoop and Weigh’ cabinet filled with a huge selection of nuts and dried fruit mixes.”