Aldi, a renowned supermarket chain, is altering its business approach to better compete with industry rivals such as Woolworths and Coles. This modification in strategy arrives shortly after Costco, another competitor, surpassed Aldi’s profits despite having a mere 15 brick and mortar establishments.
Aldi’s new tactic revolves around lowering the prices of around 300 selected products, aiming to provide customers with more affordable options compared to its competition. The company, in August 2025, posited that its prices are approximately 16.8% lower than the competition.
In the words of the company spokesperson, “Our recent reductions in grocery prices present the perfect opportunity for customers to try out new products from our everyday range or to replenish their stock of beloved items.”
Aldi Australia’s CEO, Anna McGrath, has also acknowledged that the company intends to decrease the number of branded goods available for sale. However, requests for additional commentary on this new business strategy from Aldi have thus far gone unanswered.
During the ACCC Supermarkets Inquiry of 2024-2025, Aldi acknowledged its relatively limited product range. The company stated that it carries roughly 1,800 products, in stark contrast to the approximately 25,000 products that full-line supermarkets offer.
Aldi Australia, which commands a market share of around 9-11%, reported a sales figure of AUD 13.3 billion for the previous fiscal year and profits amounting to AUD 403.7 million.
What is Aldi’s new strategy to compete with Woolworths and Coles?
Aldi is planning to decrease prices on around 300 products to provide cheaper alternatives to its competitors.
How is Aldi’s product range different from full line supermarkets?
Aldi carries about 1,800 products, far less than the approximately 25,000 products that full-line supermarkets typically offer.
How is Aldi Australia performing in terms of market share and financials?
Aldi Australia holds a market share of around 9-11%, and it reported sales of AUD 13.3 billion and profits of AUD 403.7 million in the last fiscal year.
