Aldi sales predicted to almost double in the next five years threatening Coles-Woolworths supermarket stranglehold

  • Aldi sales are predicted to increase from $5.3 billion to $9.3 billion by 2019
  • Predictions in a new report from investment bank UBS
  • Aldi currently has 350 stores across Australia and plans to open 25 new stores each year for the next few years

By KATE LYONS FOR DAILY MAIL AUSTRALIA

Published: | Updated:


Aldi looks set to almost double its sales in the next five years

Aldi looks set to almost double its sales in the next five years

Aldi sales could double in the next five years, putting pressure on the Coles-Woolworths supermarket duopoly, according to a new report from investment bank UBS, reports the Australian Financial Review.

Sales at the German discount supermarket chain are projected to increase from their current level of $5.3 billion to $9.3 billion by 2019 taking an estimated $250 million to $350 million of sales from each Woolworths, Coles and Metcash, which owns IGA.

The projected increase in sales will come as Aldi opens more stores across the country and improves conditions to appeal to wealthier customers.

Aldi, which launched in Australia in 2001, currently has 350 stores across the country, and plans to open 25 new stores a year for the next few years, including expanding into Western Australia and South Australia, which it plans to do by 2016.

The report from UBS also indicated the chain could reach sales of $13 billion, which would present a serious challenge to the stranglehold of Woolworths and Coles on the Australian grocery market.

In order to reach sales of $13 billion Aldi would need to fix problems identified by a UBS survey of 600 customers, including lengthy checkout queues, lack of quality fresh food and items being out of stock, three areas that Coles and Woolworths have prioritised.

Aldi originally appealed to low-income earners, but it is increasingly appealing to wealthier customers and young families.

Stefan Kopp, Aldi's joint group managing director, told the Australian Financial Review that the increase in sales to $9 billion predicted by UBS was 'achieveable and slightly optimistic', though he denied Aldi would ever be a 'big player' or reach the size or Cole and Woolworths.

Aldi's increasing sales may threaten the Coles-Woolworths duopoly of the grocery market in Australia

Aldi's increasing sales may threaten the Coles-Woolworths duopoly of the grocery market in Australia

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