With Aldi’s (Essen Germany) announcement that it will open 120 new stores across Australia — 70 in Western Australia and 50 in South Australia — a new report from Morgan Stanley says the discount supermarket chain has reached critical mass. “This is the point when private label scale is achieved, which is critical for discounters’ buying terms,” the authors of the report write.
The report quotes senior Aldi executives who argue that while discounters initially struggle as country-by-country tastes differ and building scale takes time, “once the discounter reaches critical mass there is no stopping it,” reports News.com.au.
The discount chain aims to have 20 stores operating in Western Australia within the first six to eight months following the completion of a distribution center in mid-2016.