Aldi refused new store on Glynburn Rd Glynde following opposition from rival Foodland

Aldi’s plans for an expansion into the north eastern suburbs have suffered a setback, despite the backing of another mega retail chain. But they’ve had some good news, too.

The State Commission Assessment Panel has refused Aldi’s application for a supermarket on the corner of Glynburn and Lewis roads, Glynde. Picture: Nielsen Architects

Rival supermarkets have increased sales and none have closed as a result of German supermarket giant Aldi’s entry into the South Australian market, the company’s property director says.

Nigel Uren has told a hearing into the company’s plans to build a store at Glynde that no competitor has closed near where one of Aldi’s 39 stores have opened.

“The notion we are going to adversely affect another supermarket is false and has not occurred to date,” he told the State’s Commission Assessment Panel on Wednesday.

“Foodlands have traded extremely well and in fact sales are up as a result of Aldi’s opening up (nearby).”

The comments came in the face of successful opposition from the landlord and operator of the Felixstow Foodland to Aldi’s proposal for a 1900 sqm supermarket and 105 car parks on the southwest corner of Glynburn Rd and Lewis Rd.

The proposal was one of two Aldi supermarkets considered by the panel, including a replacement to a Mitre 10 hardware store at 499 Portrush Rd, Glenunga.

The panel on Wednesday approved the Glenunga proposal with conditions but rejected the Glynde project because it was a “significant departure” from development policies.

The Glenunga plan was a scaled down version of one the panel rejected in January 2020.

The Glynde proposal - straddling land zoned light industrial and residential - would be about 350m, in a direct line, from the Felixstow Foodland on Payneham Rd.

The State Commission Assessment Panel has rejected a bid by German supermarket giant Aldi to build a new supermarket near a Foodland at Felixstow. Image: Metromap/Artist

Foodland’s landlord Peter Mercorella demanded the SCAP refuse the “noncomplying” proposal arguing it was nearly seven times larger than what was envisaged for shops on the site under Norwood, Payneham & St Peter’s Council zoning guidelines.

“This is area is one of few areas ... earmarked for medium density residential development to allow our population to grow in a sustainable way and not encourage urban sprawl,” Mr Mercorella wrote in submission to the panel.

“Hundreds of cars coming in and out of the Aldi store and using Lewis Road will cause significant traffic impacts to this residential street not to mention more congested traffic in and around the Glynde Corner.”

Concept images of the Aldi store at Portrush Road, Glenunga. Picture: Nielsen Architects

But Bunnings - which had its plans for a nearby Glynde outlet rejected in 2017 - wrote in support of Aldi’s proposal arguing that there were other examples of shops within the light industry zone and residential zones.

“The lack of on-site parking provided by older non-residential (primarily motor repair) land uses and the perceived congestion of public roads in the broader locality has created sensitivity in the community and resistance to new development,” its planning firm Future Urban wrote.

The council also raised concerns about traffic impacts and recommended Aldi seek a rezoning of the land, according to planning report by Aldi’s consultant Ekistics.

Ekistics’ Richard Dwyer told the panel that Aldi had already started rezoning bid with the approval of planning minister Vickie Chapman.

Any rezoning proposal will go to public consultation.