Aldi winning shoppers from Coles, Woolworths

Aldi is the most profitable retailer in Australia and it should grow by about 15 per cent a year for the next three years, according to a new report.

According to AAP, the report by UBS analysts found that the German supermarket chain is growing four to five times as fast as the overall Australian grocery market and that it could grow to $14.8 billion by 2019 if the company focuses on fresh food on customer service.

In addition, by 2019-20 Aldi is expected to grow its share of the national grocery market from 7 per cent to at least 10 per cent and take a significant share of business from industry heavyweights, Coles and Woolworths.

Indeed, according to the report, Aldi could claim $450 million in sales per year from Woolworths over the next three years. It added that Coles is handling the challenge better than Woolworths.

UBS analyst Ben Gilbert pointed to the experience of Aldi overseas as having similarities to what is happening here.

“In the UK the tipping point came when the discounters (Aldi and Lidl) lifted their share of main shops to more than 10 per cent,” he told Fairfax Media.

“We think Aldi’s share of main shops is 8 per cent nationally, 10 per cent on the east coast and 15 per cent in their catchment.”

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