Sunday 5 August 2018

Aldi - A Good Lesson

Aldi has been a success story in the Australian supermarket scene and led Dick Smith to claim their predatory tactics are one of the main reasons his Australian food company closed down.

Commentators are now predicting that Aldi may have just about reached its limit in Australia with around 500 stores and 13% of the market. That is because Aldi’s very successful model doesn’t tick all the boxes for all consumers.

Aldi focuses on a comparatively small range of products (1500 versus 20-30,000 in major supermarkets), and they sell good quality products at lower prices. Their shops are austere, there are no fancy in-house bakeries, and service is limited to a quick chat with the cashier as you check out. 

Customers who want more than that need to look elsewhere. And we can only assume that is OK by Aldi. They have picked their market, and successfully built a profitable business. What more can you ask?

Keeping a focus on what you do well might be a lesson for all retailers.