Joanita Wibowo

Retirement Income

ALDI predicted to catch up with Coles and Woolworths in 10 years

ALDI predicted to catch up with Coles and Woolworths in 10 years

Woolworths and Coles have continued to maintain their spots as Australia’s most highly-rated supermarkets – but ALDI could disrupt the duopoly in 10 years, a new report has revealed.

In its first Australian Grocer Retailer Preference Index, customer data firm Dunnhumby found that Woolworths “narrowly” edged out Coles as the preferred supermarket among Aussie shoppers.

Woolworths and Coles were noted for their quality products, convenient locations and easy shopping experience, beating out competitors such as ALDI, IGA and 7-Eleven.

However, ALDI might be closing the gap in a decade. The firm said the German retailer has grown three times faster than Woolworths and Coles over the last three, five, and ten-year intervals.

Since launching its first store in 2001, ALDI has expanded to more than 500 stores nationwide.

“The compound annual growth rate for ALDI in Australia dwarves its competitors,” the firm said. “If ALDI continues to grow at this pace, they could double their market share in ten years.”

Apart from its low prices, Dunnhumby said the German retailer’s success could be attributed to the popularity of its private brands among shoppers. “Woolworths and Coles significantly trail ALDI on both overall prices and private brand,” it noted.

ALDI was also found to have the strongest emotional connection with its customers, with more people stating they would be “sad if this store closed”.

However, Dunnhumby said there is room for ALDI to improve. Compared to the average Australian grocer, ALDI scored lower in shopping experience, range of ready-to-eat food, and product freshness. “ALDI are currently winning on price so it is likely that they will focus on Convenience and Quality improvements to drive future growth.”