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.
