Aldi: The European Hard Discounter's Strategy in Australia

According to the report, Aldi's presence had had a positive impact in the neighborhood where it operated, "Aldi creates a strong competitive dynamic on the products it stocks and puts pressure on Coles and Woolworths to offer many of their private label products at prices not seen before Aldi's entry."⁷

Aldi, one of the largest retailers in Germany, entered Australia in 2001.

Its stated goal was "to provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices."⁸

Aldi with its 'no-frills' style of retailing maintained low prices through its low cost business model that eliminated all unnecessary expenses and passed on the savings to the customers. One of the biggest advantages of maintaining a simple operational set-up was that Aldi was able to keep its wage bill low by employing the minimum number of people. The company's motto was 'Top quality at incredibly low prices - guaranteed'.

Aldi used the same business model along with a bit of localization in Australia and this helped it become popular with a section of the consumers and also to expand rapidly in Australia...