Abstract

The case focuses on Germany-based hard discounter Aldi's unique business practices and its operations in Australia. Aldi, one of the oldest retailers in Germany, was considered to be one of the pioneers of the hard discounter concept. It entered Australia in 2001. Aldi followed the strategy it adopted for its German operations in Australia with minimal modifications. The case discusses the operational strategy of Aldi in Australia and how it was successful in attracting price sensitive Australian consumers despite strong local competition. The case highlights Aldi's expansion plans in Australia and concludes by identifying the challenges the company faced from the local retailers and the competition it can expect from other European and American retailers which have announced their plans to enter the market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand Aldi's business practices and how hard discounters operate.
• Study the Australian retail market.
• Analyze Aldi's entry and expansion strategy in Australia.
• Analyze the retail management strategies adopted by Aldi in Australia.

Keywords

Aldi, Hard Discounter, Global expansion, Retailing, Competitive strategy, Low cost business model, Limited Assortment, Australia Competition and Consumer Association (ACCC), Australian Retail industry, Coles, Woolworths, Aldi Süd, Aldi Nord, Private label products, Surprise Buys, Lidl, Netto, Costco Wholesale Corporation, German retailer, Unit Pricing, 'No-frills' style