What’s coming next….

Jeff Rogut
CEO AACS
The following article from ‘The Australian’ is of great interest. If you have been following our newsletters you would have read about the impact that ALDI and Lidl have had on ‘traditional’ the UK supermarket industry. This is natural progression with moves globally toward smaller, more convenient locations. What does this mean for supermarkets and the convenience industry?
Watch this space for further updates…….
Supermarket duo to face more competition
THE AUSTRALIAN JULY 16, 2014
John Durie
THE Australian supermarket giants may soon face more international competition with reports German based Lidl is scouting property for a potential 2015 launch.
Lidl has stores across Europe and like German rival Aldi is privately owned and runs on a similar model with heavy emphasis on house-brand products.
The move comes as the focus increases on Woolworths and Coles as the Competition Policy review heads for home.
The dominant supermarkets have attempted to deflect attention on their market position by pointing to Metcash and the growth in Aldi and Costco stores.
Aldi is estimated at having 4.6 per cent of the market up from 3.4 per cent two years ago.
It runs few lines which means it needs less space and is cheaper to run.
The company is owned by the Albrecht family, while another German family, led by Dieter Schwarz, owns Lidl.
Lidl also sells house-brand consumer electronic products and appliances in the UK and across Europe.
According to trade press reports it is scouting property for its Australian launch.
The entry of new competitors tells you the Australian market is seen as potentially lucrative.
Woolies and Coles have an estimated 80 per cent share of the local grocery market and are extending their reach in fresh food baking and more recently into insurance and personal finance.
The latter follows the UK model and ironically enough Lidl and Aldi have recently featured in the UK press for having taken market share from industry leader Tesco.