Tasmanian Independent Retailers CEO Drew Freeman criticises proposal to entice Aldi to the state

The organisation behind Tasmania’s more than 80 IGA stores has criticised a proposal to entice discount supermarket chain Aldi to the state. WHY THEY’RE AGAINST IT >>>

Tasmanian Independent Retailers has pushed back against the Greens’ proposal to entice Aldi to the state. Picture: Supplied

The organisation representing IGA supermarkets across Tasmania has expressed concern about the Greens’ $30m election pledge to lure the discount grocery chain Aldi to the state, saying the move would risk driving independently owned shops out of business.

Tasmanian Independent Retailers (TIR), which represents the state’s 86 IGA stores, warned against favouring a multinational chain like Aldi over “family-owned businesses that buy local, employ locals, and support local”.

TIR CEO Drew Freeman said while he welcomed measures to bring down the cost of living and increase competition in the supermarket sector “subsidising a large foreign-owned multinational competitor” was not the answer.

Tasmanian Independent Retailers CEO Drew Freeman. Picture: Jess Oakenfull

“Independent IGA operators are already delivering genuine competition to the big two [Coles and Woolworths],” Mr Freeman said.

“Aldi’s entry into Tasmania may appear to offer a quick fix, but the risk is that it drives out the very businesses that have supported Tasmanian communities for decades. That’s not competition – that’s replacement.”

Mr Freeman urged policymakers to instead invest in independent grocery stores like IGA, which he said were already providing affordable groceries.

“Governments at all levels have a real opportunity to support independent retailers by tackling the rising costs of doing business that are driving up prices at the checkout – including freight, insurance, energy and compliance,” he said.

The Greens have a $30m plan to woo discount supermarket chain Aldi to Tasmania. Picture: NCA NewsWire

“Rather than funnelling taxpayer money to large, foreign-owned multinationals, we want to see meaningful action that supports locally owned businesses and helps ease cost-of-living pressures for Tasmanians.”

Tasmanian Greens senator Nick McKim, the party’s economic justice spokesman, announced the plan to entice Aldi to the state last week.

A report published last year by consumer group CHOICE found that Aldi was the most affordable supermarket chain in the country, with the total price of an average basket of groceries being $50.79.

While Aldi has almost 600 stores across Australia, Tasmania is the only state without one.

Mr McKim said the funding pledge would involve a $2m supermarket competition review and provide up to $28m to the state government to support the entry of new smaller competitors, such as Aldi, into Tasmania’s supermarket sector.

Greens Senator Nick McKim. Picture: Linda Higginson

“The best way to bring down prices for customers, and help existing retailers like IGA is to have a truly competitive environment. We don’t have that in Tasmania at the moment,” he said.

“That means the duopoly gets broken up, no more price gouging, and no more of the big corporations pushing around smaller entrants.”

Speaking at a Senate inquiry in April last year, Aldi CEO Anna McGrath said the chain had “no current plan” to open a store in Tasmania, citing supply chain “complexities”.

“That’s not to say that we don’t continuously review where we may expand in the future,” she said.

Originally published as Tasmanian Independent Retailers CEO Drew Freeman criticises proposal to entice Aldi to the state