Aldi Distribution Centre | Regency Park $70 Million

[Ben]

Aldi prepares for SA arrival
By Inside Retail on February 7, 2014

Discount supermarket chain, Aldi, is continuing its aggressive expansion across Australia, confirming plans to open an eight hectre warehouse and distribution centre in South Australia.

To be located in Adelaide’s Regency Park, the SA warehouse and distribution centre will be around 30,000sqm and cater for about 50 new Aldi grocery stores. The site is expected to cost around $70 million and create about 150 jobs.

“The opening of our South Australian business will generate up to 900 new jobs and we are looking forward to offering the people of South Australia our smarter shopping offering, which is a convenient instore experience with a clearly defined product range of the highest quality products, at permanently low prices,” Viktor Jakupec, MD of Aldi South Australia, said.

Jakupec was appointed head of the chain’s South Australian division last year, having previously lead the company’s expansion into Queensland in 2004, where it now has around 75 stores across the state.

Aldi confirmed plans to enter SA and WA in 2014, aiming for around 45 stores in SA and up to 60 to 70 stores in WA.

In October, 2013, the supermarket chain reportedly began conducting interviews with potential SA store managers and area managers as part of its recruitment program.

Aldi has 319 stores across Victoria, NSW, and Queensland. Since first entering the local market in 2001, Aldi is now estimated to have around five per cent of Australia’s supermarket sector.

[ChillyPhilly]

I'm no expert on the supermarket...market, but surely more players in the said market can only be a good thing for competition.

[mooshie]

Adelaide has the most competitive grocery retail market in Australia, IGA and Foodland hold a strong market share here and unfortunately will bear the brunt of the Aldi openings as they are a small convenient store with similar range and size as a lot of our IGAs and 2-3 register Foodlands.

[Torrens_5022]

Aldi offers a basic line of groceries mainly - I doubt this would really effect the IGA and Foodland supermarkets that much, you would go to
Aldi for your basics Foodland and IGA are more of a local convenience and/or a place where you can get a better range of items - eg the Deli department at some Foodland's is far better in range and quality and generally better priced then Coles and Woolworths. Aldi will compete with the the supermarket brand range of items, which really were initially a response to Aldi's arrival in Australia.

[Waewick]

Frewville Foodland for me. Best supermarket in the eastern suburbs

[Brucetiki]

Frewville Foodland for me. Best supermarket in the eastern suburbs

Use to love shopping at the Fairview Park one when it was owned by the same mob as the Frewville (and Pasadena), but Fairview has gone downhill since Romeo's took it over, so now I tend to go to Munno Para (not owned by the same people but their range/quality is comparable - and it's a massive supermarket) until the Salisbury Plain one will open (which will be owned by the same mob as Munno Para I believe).

[Aidan]

Aldi plan to open a shop at Hallett Cove shopping centre where Ned's currently is.

Does anyone have any idea where they plan to put the rest? I saw mention of Noarlunga and Modbury on other threads, and I think it's safe to assume one will go into one of the four shopping centres on Main North Road just south of Regency Road. But where else?

[Patrick_27]

Aldi plan to open a shop at Hallett Cove shopping centre where Ned's currently is.

Does anyone have any idea where they plan to put the rest? I saw mention of Noarlunga and Modbury on other threads, and I think it's safe to assume one will go into one of the four shopping centres on Main North Road just south of Regency Road. But where else?

As far as I understand, the first Aldi will open at an upgraded Giles Plains Shopping Centre.

[Patrick_27]

Aldi offers a basic line of groceries mainly - I doubt this would really effect the IGA and Foodland supermarkets that much, you would go to
Aldi for your basics Foodland and IGA are more of a local convenience and/or a place where you can get a better range of items - eg the Deli department at some Foodland's is far better in range and quality and generally better priced then Coles and Woolworths. Aldi will compete with the the supermarket brand range of items, which really were initially a response to Aldi's arrival in Australia.

I completely disagree. Aldi practically wiped independent supermarkets out of the Victorian market. You're right, IGA will probably be fine because they're for convenience. But Larger Foodlands (such as those owned by Romeo's) and those in Frewville and Norwood will suffer if Aldi open anywhere near.

Having browsed Aldi a few times in Melbourne, their range is lacking and the quality of the products is pretty low, mostly preserved foods that you'd expect in an army ration pack. Regardless, people will flock there like they did with Costco; apparently quality doesn't matter anymore...

[Aidan]

Why do you think the bigger Foodlands would be hard hit? They sell a lot less of their own brand stuff than Coles and Woolworths do.

[contractor]

Aldi offers a basic line of groceries mainly - I doubt this would really effect the IGA and Foodland supermarkets that much, you would go to
Aldi for your basics Foodland and IGA are more of a local convenience and/or a place where you can get a better range of items - eg the Deli department at some Foodland's is far better in range and quality and generally better priced then Coles and Woolworths. Aldi will compete with the the supermarket brand range of items, which really were initially a response to Aldi's arrival in Australia.

Not sure where your getting your info from.. in the eastern states, Aldi has gained a lot of IGA and Foodland's market share and is now threatening Woolworths and Coles. Check out the share price of Metcash (Foodland) over the last 12 months due to Aldi gaining market share:

https://www.google.com.au/?gws_rd=ssl#q=asx:mts

[ghs]

Metcash supply the stock to IGA stores. They also own Mitre 10. I am not sure if they supply
foodland as well.

Costco would be another reason why Metcash have been struggling.

[crawf]

The SA market is different to the other states; we tend to support locally owned businesses and products more than most other states. And why shouldn't we?, we have some of the best produce in the country right on Adelaide's doorstep.

No doubt though, Aldi will shake things up.

[SRW]

Metcash supply the stock to IGA stores. They also own Mitre 10. I am not sure if they supply
foodland as well.

Costco would be another reason why Metcash have been struggling.

I'm pretty sure the Drakes-run Foodlands have their own supply chain, but the others are mostly affiliated with IGA and therefore Metcash supplied.

[Brucetiki]

Aldi plan to open a shop at Hallett Cove shopping centre where Ned's currently is.

Does anyone have any idea where they plan to put the rest? I saw mention of Noarlunga and Modbury on other threads, and I think it's safe to assume one will go into one of the four shopping centres on Main North Road just south of Regency Road. But where else?

As far as I understand, the first Aldi will open at an upgraded Giles Plains Shopping Centre.

They're already starting work on the upgrade, which includes the Aldi. Can't wait for it to be finished.