Aldi Sud considers market entry to China
China not top priority yet
We consider this step to be premature. No doubt Aldi is looking for new markets, and in contrast to its competitor, Schwarz Group’s Lidl, Aldi has been looking to enter larger markets outside Europe like USA and Australia. From this point of view, China would make sense. However, we still believe that in the short term, Aldi Sud will allocate funds in its largest foreign markets, namely USA, UK and Australia, all of which promise big growth opportunities.
USA, UK and Australia remain top priority
Indeed, USA is a strategic foreign market for the retailer. Aldi Sud plans to increase its store count by 50% by 2018, including the first store openings on the West Coast. The discounter wants to add 650 outlets to its 1,300-strong store network by then.
In the UK, Aldi Sud has outlined plans to almost double its store estate to 1,000 by 2022 as it confirms £600m investment to significantly expand its presence in the UK (for Aldi’s UK growth plans click here).
In Australia, Aldi Sud plans to invest A$400m-A$450m in Western Australia (WA) and A$200m-A$300m in South Australia (SA) over the next few years, bringing total investment in the country to almost A$4bn since entering the market in 2001 (for Aldi’s Australia expansion plans click here). China may be on the cards for Aldi, but not in the near future as it focuses on these three key markets.
Soruce: igd.com
