Wednesday, April 23, 2008

Advice from Australia's Treasurer: Shop at Aldi


They'll be making an ad out of today's CPI press conference:

TREASURER: What we’re trying to do is to get Aldi to set up more quickly and they haven’t been able to get the land because their major competitors gobble it all up. This is a measure about making sure another competitor gets into the grocery market in more locations, more quickly to deliver better prices. I’ll tell you what, how many people here shop at Aldi?

JOURNALISTS: (inaudible)

TREASURER: I can tell you this, out there in my electorate, a lot more do. You want to know why? Because they get a better price.

The Treasurer is right. When people ask me for (unlicenced) financial advice, shopping at Aldi is the first tip I give them.

(The second is to bring their own lunch to work, and the third is to switch their home loan to an organisation I am no longer able to recommend.)

Not only are Aldi's prices fantastic, but Aldi is a great company in other ways. The treat their employees well, paying above the industry standard, letting them sit down at work and offering paid maternity leave. And I have heard they treat their Australian suppliers well.

Nestle doesn't like them, which I take as another encouraging sign.

See also ALDI, Public Submission to ACCC Grocery Inquiry, March 11 2008


Neerav Bhatt said...

You're not going to make any friends with Coles, Woolies or Nestle with this article Peter ... but that's why you're more interesting to read than most politics/economics writers :-)

Vee said...

I live in a small town of about 10 000 and it is supported by a Coles and Woolworths. ALDI is oddly enough coming. In our main street we have plenty of empty shop fronts.

With ALDIs coming I see more empty shop fronts coming and many of the locals losing jobs. In fact several small businesses were forced to move out of their current locations all for ALDIs

The nearest ALDIs at the moment are less than an hour's drive away. Don't get me wrong, I like ALDI.

ALDIs may pay good, train great, make you sign a non-disclosure agreement on pay but it also only recruits a small number of employees.

From a consumer's viewpoint, its great. For the economic growth and development of a small town it is a disaster.

ALDIs is ideal for towns of 30 000, 50 000, 100 000 or higher.

I hope my town does not have a closure of Coles, Woollies or other shop fronts when ALDIs come, I do hope I am wrong but I see it as inevitable.

Peter said...

Thanks Vee

Annette said...

Vee, I think you will find the majority of the damage to small retailers was already done by Coles and Woolworths, if you still have an independant fruit and veg shop or a butcher I would be suprised. Their retail strategies used to squeeze out competitors is ruthless.

I come from a town of around 20,000people, they currently have a Coles, a SupaIGA, and TWO Woolworths as well as an ALDI. The ALDI was very new last time I visited, but it was heartening to see, at Christmas time the SupaIGA was just as busy as the main Woolworths.

You maybe lucky and the ALDI will attract more people from the surrounding area - especially given the Treasurers rousing endorsement.

Lesley said...

The closest ALDI to me had three aisles of junk food, half an aisle of veges and fruit the first (and last) time I went there. The biggest seller judging by the number of pallets was soft drinks. I have a restricted diet and could only find a literal handful of the foods that I normally eat.
I've since decided that I should patronise more often the organic foods shop two suburbs away - in the long run, it will be better for me - I may spend as much as I might otherwise have spent on the doctor, but at least I'll feel better!

Competition doesn't just mean selling the same stuff cheaper.

Peter said...

Fair point.

It is best for people who will ruthlessly spend their money wisely (and not be tempted by the cheap electrical goods etc as specials) and who need a standard set of groceries.

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