Aldi invests $700M in 120 stores, 2000 jobs in SA and WA

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Aldi
A customer walks into the German discount supermarket ALDI in Sydney, Australia June 19, 2015. Reuters/David Gray

German supermarket chain Aldi is invested heavily in expanding its footprint in Western Australia and South Australia. The chain is also lobbying for an increase trading times for its stores in South Australia. If Aldi’s expansion rolls out as planned, the chain will create around 900 permanent jobs in SA and another 350 jobs in WA.

Aldi’s November statement revealed that its expansion plans had an associated investment of over $700 million. This investment will eventually result in 120 new Aldi stores and over 2,000 new jobs in SA and WA.

Aldi already has 19 stores in WA. It wants to add another 14 in the state, taking the tally to 33 stores. The company issued a statement on Tuesday outlining its plans for WA. According to the statement, the first Aldi store will open in Morley, WA, this year. This will be followed by another six stores coming up in Cockburn, Lakelands, South Fremantle, Spearwood, Banksia Grove and Secret Harbour. However, it refrained from providing the locations of other seven stores.

Perth Now reveals that Aldi in Morley will have to battle competition from the well-established Tony Galati’s discount supermarket chain Spudshed. It will also have to battle Woolworths and Coles in the area. However, if the past is anything to go by, then it will be WA customers who will benefit from this competition.

This is because according to Woolworths, Aldi’s entry in WA and SA saw average prices fall 1.9 percent. Aldi, which opened its first store in WA in June, slowly increased its footprint to 19 stores and 500 jobs. It partnered with 32 local suppliers. However, it plans to have a total of 70 stores in region, which will help the chain create more than a thousand jobs in WA. 

In addition to WA, Aldi plans to increase its presence in SA this year. It plans to do so by increasing trading times and adding new stores. Currently, only two Aldi stores operate outside the usual 11am-to-5pm business hours. Aldi’s spokesperson emphasised the need for longer working hours especially on Sundays by saying that the operating hours were based on customer feedback.

Aldi stores in other states such as NSW and Victoria stay open between 8:30 a.m. and 8 p.m. even on Sundays. Hence the chain wanted to sync its working hours in SA with its stores in NSW and Victoria. It also planned to add 10 new stores in the region this year. These new stores will roll out in Aldinga, Nuriootpa, Kensington Park, Port Pirie, Adelaide Airport and Victor Harbor. It expected to create 150 new jobs with its immediate roll out. In the long term, though, the store plans to add another 50 stores.