Home' National Liquor News : NLN FEB 2018 Contents 44 | FEBRUARY 2018 NATIONAL LIQUOR NEWS
RETAIL & WHOLESALE
WHAT WERE THE HIGHLIGHTS FOR
ALDI IN 2017?
2017 was another fantastic year for expansion
at ALDI, opening just under one new store
a week. Our regions in South Australia and
Western Australia are now more than a year
old and are doing very well. ALDI initially
opened in Australia in 2001, and by the end of
2017 had over 500 stores (more than 300 with
liquor), which I think is an amazing effort by
all the ALDI team.
During 2017 we also have been busy with
our store refurbishment program, rolling that
out to many more stores. We’ve improved
the range, adding a number of new products,
invested in around 500 retail reductions across
the grocery range, without pressuring our
suppliers, and continued to improve the quality
of our products. This has all helped to continue
our double digit sales growth and resulted in
ALDI having our biggest year in Australia yet
with total sales of over $8bn per annum.
Within the liquor offering, ALDI had a very
successful 2017. We have worked very hard to
deliver a compelling range of excellent quality
exclusive brand products. During 2017 some
highlights were achieving Double Gold for
our Highland Black 8 Year Old Scotch at the
Melbourne International Spirits Competition,
as well as a Trophy for Best Australian
Style Lager for our Storm Super Dry at the
Australian International Beer Awards.
WHAT DO YOU SEE AS THE MAIN
CHALLENGES AND OPPORTUNITIES
IN WA IN 2018?
We almost doubled our store network in
Western Australia in 2017. We also opened
our first liquor stores at the end of August, and
finished the year with nine liquor stores in WA.
Support from the WA public continues to
be excellent and we’ve had great feedback
from customers on the quality of our products
including our liquor range.
One of the main challenges in rolling out our
liquor offer to WA is the tyranny of distance
and the cost that comes with that. Outside
of that however, I see plenty of opportunity
in WA. Since we first offered liquor as part
of our range in our Victorian stores in 2003,
customers have become used to liquor being a
convenient part of a household shop. Our goal
was to bring this same convenience, efficiency
and quality liquor range to shoppers in WA
and I think we have been successful with this to
date. I am confident we will continue to trade
very well with our great quality, great value
IS EXPANSION STILL A BIG
PRIORITY FOR ALDI? AND WITH
THAT EXPANSION, IS ENSURING
NEW STORES HAVE LIQUOR
LICENSES ALSO A PRIORITY?
We’ve always indicated we see potential for
600 stores in Australia, and we’re only at 500.
So yes, expansion will continue for the next
few years. New stores will be built in the new
‘Project Fresh’ format and wherever possible
retailers would like to include a liquor offering
as part of those store rollouts.
WHAT DO YOU SEE AS THE MAIN
CHALLENGES AND OPPORTUNITIES
FOR ALDI IN 2018?
As with any business that has been expanding
rapidly, the challenge is always to ensure that
we can deliver on availability, execution and
service. We continue to be actively engaged
with over 1000 suppliers, many of them
Australian and many of them having supplied
us for many years. We’ll continue to work
closely with them to ensure we can get the right
products to the right place at the right time.
A major challenge is to increase the basket
size at a time when discretionary spend is under
pressure. During 2017, we commissioned
research with Deloitte Access Economics that
showed 37 per cent of Aussie households
are concerned about their ability to pay for
expenses like bills and household costs. This
is up by six per cent from only two years ago
and is expected to continue to increase. It also
highlighted that over the last 12 months, one
in four Australians (25 per cent) has switched
the grocery store at which they shop most
frequently, with value for money being the
primary driver. So the opportunity for us lies
in keeping a laser like focus on providing great
value for money for our customers.
At the same time we’ll give our customers
greater choice via an expanded range and a better
experience via investment in our store network.
WHAT DIFFICULTIES ARE FACING
In NSW the new Container Deposit Scheme
(CDS) will clearly have an impact on retails
via additional cost of goods, not to mention
the additional cost and complexity of
administration brought about by the scheme.
WHAT WILL BE THE IMMEDIATE
FOCUS FOR ALDI’S LIQUOR
BUSINESS IN 2018?
As with our grocery offer, in liquor we will
continue to offer a small and focused core
range of great value products in each major
market segment. We will also continue to
supplement this with a Special Buys program
which we use to cover other market segments
and innovations throughout the year.
Our biggest opportunity remains in
convincing our large number of main grocery
shoppers to try the ALDI liquor offer and
ideally convert them to regular ALDI liquor
shoppers. Our continued focus on an everyday
low prices strategy means we will always offer
value to the customer over a period of time.
We’ll continue to have a balance of market
leading brands as well as our own exclusive
brands within the range. We’ve worked very
hard to break the stigma around ‘private
label’ and we are proud of the unique quality
perception we have developed in Australia.
PAUL HANDLEY, BUYING DIRECTOR – BEER, CIDER, SPIRITS & RTDS
“We’ve worked very
hard to break the
stigma around ‘private
label’ and we are
proud of the unique
we have developed
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