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Final Case Study Aldi Corporation

In: Business and Management

Submitted By CristinaToca
Words 13008
Pages 53
Submission to the
Competition Policy Review

made by

ALDI Stores

10 June 2014

1. Introduction
ALDI Stores Australia welcomes the opportunity to make this submission to the
Competition Policy Review (the Review).
Since ALDI opened its first stores at Marrickville and Bankstown Airport in January 2001, our rapid growth has meant that an estimated 4.2 million people shop with us in an average four-week period 1.
Our arrival in Australia has helped redefine the retail landscape, introducing a new and higher quality standard in private-label groceries. In focussing relentlessly on delivering exceptional quality products, matching that of the market leading brands but at prices significantly lower, ALDI provides a unique alternative to the Australian consumer. Our strong sales growth is testament to customers voting with their feet and embracing the very fact that we offer something different.
Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas.
The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices and innovation that ALDI offers.
ALDI has been consistently making the case to Federal, State and Local Government in support of land use planning and zoning reform for over a decade. For this reason, we welcome the focus of the Review on identifying and removing unwarranted regulatory impediments to competition, including those relating to the grocery retailing sector.

2. About ALDI...

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