Aldi have identified that only 30% of their customers could be described as low income and the percentage of high income customers is growing.
Aldi focus on smaller stores than their competitors, fewer products and private labels. The smaller store-print enables them to access prime locations that the big boys can’t get to. Their philosophy has been successful with Aldi now the third largest food retailer in Australia.
The new trial stores (one in each of Qld, NSW, ACT and Vic) are to be larger, offer more fresh food, and include premium brands. It will be an interesting exercise as Aldi creep into the realm of the bigger operators and away from the philosophy that has been so successful for them.
A recent survey of successful high level entrepreneurs concluded that risk-taking was a prime ingredient of successful business ventures. Aldi will be hoping they have got this one right.