Aldi has asked ACCC’s supermarket inquiry to hold a closed session when discussing its profitability

Appearing before the ACCC inquiry into supermarkets, German retailer Aldi has requested its responses to questions about sales and profitability be shielded from the public and competitors.

Responses to questions about Aldi’s recent profitability, given to the Australian Competition and Consumer Commission inquiry into supermarkets, should be taken into a private hearing and not broadcast, managing director for buying Jordan Lack has requested.

Three executives from the family owned German supermarket chain appeared before the ACCC’s inquiry into supermarkets on Monday and were questioned about Aldi’s sales and profits by counsel assisting the inquiry Naomi Sharp, SC.

Ms Sharp drew attention to recent sales and pre-tax earnings results posted on the Aldi website but asked what were the more recent sales and earnings.

The most senior Aldi Australia executive to appear before the hearing, Mr Lack was asked by Ms Sharp about Aldi’s before-profit results for 2023 and 2024 – which have yet to be published on the Aldi website, where similar financial results for 2022 and 2021 have been published.

Mr Lack requested to Ms Sharp that discussion about Aldi’s recent financial performance be taken privately and that the live broadcasting of the ACCC inquiry be suspended.

ACCC deputy chair Mick Keogh, who is running the inquiry, asked Aldi’s legal representative at the inquiry if they could provide reasons for objections to answering financial questions publicly.

The lawyer responded that given Aldi was a private company, it felt it was necessary to discuss these matters in a closed hearing due to confidentiality concerns about matters not currently on the public record.

Mr Keogh later ruled that these questions be held over and the inquiry might consider a private session later. In the past Aldi has issued an annual “tax contribution report” as well as some segments of its local accounts whereby it shows its sales and pre-tax earnings, and spruiks the benefit to Australian households from savings when shopping at Aldi.

Later on Monday Mr Lack told the inquiry he was observing that shoppers sought value purchases when shopping for groceries due to difficulties with the cost of living.

Mr Lack told the inquiry shoppers were purchasing inexpensive food when preparing dinner especially “proteins” whereby consumers bought cheaper cuts of red meat, chicken and eggs.

Another Aldi executive, Aldi managing director of real estate Andrew Starr, was asked by the inquiry about access to property for new Aldi stores. Mr Starr responded that zoning laws and other property rules had become more flexible since Aldi first arrived in Australia 23 years ago – but that there were still impediments to opening new stores.

The Aldi property executive said Victoria was the “benchmark” for more flexible zoning laws, while NSW and Queensland still had room for improvement.

The ACCC inquiry will hear from Metcash, Coles and Woolworths executives in coming weeks. The public hearings are part of the ACCC’s inquiry into the $120bn supermarkets sector.