Aldi eyes $ 1 billion expansion plan in Australia

German discount supermarket chain Aldi is making it big in Australia. With its total profit expected to surge $7 billion this year, Aldi plans to take on rivals Woolworths and Coles in Australian supermarket war. Aldi’s sales hit $5.8 billion in 2014 and is expected to grow on a similar pace, reports The Sydney Morning Herald. The German chain plans to spend $ 1 billion over the following three years to expand and refurbish its stores across the country. It would also upturn the assortment of fresh food in the supermarket shelves. Over the past two years Aldi has opened 100 new stores across Australia.

According to industry experts, Aldi’s move could bring in a radical change in Australian supermarket scenario. Coles and Woolworths will also have to step up their game to stay alive in the market. Aldi is expanding its range of fresh fruit and vegetables, meat, bakery, dairy and chilled products as well as health foods. Having said, Aldi is no threat to the industry giants Coles and Woolworths at this stage. Aldi with 1,500 products in its shelves is far behind its larger counterparts, Coles and Woolworths, which has an inventory of more than 25,000 products.

Aldi, in the near future plans to expend around $700 million to open 120 stores in South Australia and Western Australia. In addition it plans to refurbish its 400 east coast stores as well. These stores are to be expanded to 1000 square meters and each one of them would have a fresh food counter on the doorway.

Aldi boss Tom Daunt said to the Australian Financial Review (AFR), “We’re not trying to become a full-line supermarket; we are trying to offer fresh in the Aldi way.” An Aldi spokeswomen added on its plans of refurbishing stores: ‘The new store format features a number of new upgrades, including clearer signage, redesigned shelving and expanded wooden produce bays, energy efficient LED lighting and extended chillers,’ the spokeswoman said.