, Australia
1 view

How will Aldi expand to online grocery in Australia?

The company has expressed plans to launch an online service to sell alcohol.

With online grocery set to drive around 50% of net new grocery sales between 2020-22 in Australia, and Metcash having launched new online grocery platforms in 2020, IGD has offered some potential options for Aldi for when it launches its own service.

First is an online liquor service. The business previously operated one from 2013 until March 2016, when it was terminated so that it could focus all of its attention on its expansion into South and Western Australia.

“With Woolworths and Coles both reporting record growth in online sales and penetration of the channel, according to our data, set to hit 5.0% of market sales by the end of 2022, Aldi must be considering its next move,” IGD’s head of insight in Asia Pacific Nick Miles said.

Speaking to News Corp, CEO Tom Daunt said that launching an online service was an inevitable growth area and would likely start with Aldi selling alcohol and its Special Buys non-food products online, opposed to its full grocery range.

Second is to figure out an efficient and standardised solution. As driving a profit from online grocery services is a major challenge, Aldi has been steady and cautious in its approach to take the plunge and launch online in Australia, the report stated.

“Its operating model is also built on consistent international standards and therefore having a uniform solution that can be deployed successfully and efficiently, but flexed, across all markets will be key,” Miles added.

Already, Aldi Süd, which Australia is part of, is rolling out a globally uniform IT system across its 20 countries, which will help its growth into online grocery. It has also brought together Aldi Nord and Aldi Süd to look at how to roll out a standardised solution for ecommerce.

Third, with both click & collect and third party delivery offering more efficient ways to fulfil online orders and discounters general adoption of these methods, Aldi could likely replicate this activity in Australia in the near future.

The business launched an online service in the UK last April offering food packages, this was followed by signing a partnership with Deliveroo to fulfil orders from 120 stores and then a click & collect solution that was rolled out to 200 stores by the end of January.

Meanwhile, Aldi and Lidl across Europe have been testing other third party delivery partnerships in Hungary, Ireland, Spain and Italy. In the US, Aldi now offers same day delivery from over 2,000 stores via Instacart. Click & collect (called Curbside) was introduced last summer at 600 stores, with plans to expand to 1,200 stores by the end of 2021.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox

Check out these tech initiatives by Japan's retailers

Daiei saved 50% in opening costs for its upcoming unmanned store.

Asia's formalwear retailers urged to revisit market strategies

As employees remain working from home, retailers could consider focusing on comfort, analysts have advised.

Alibaba's Tmall rolls out 3D shopping for furniture brands

Customers can explore over 10,000 showrooms through their phones.

Check out FamilyMart's new stores across Asia

The company rolled out its first drive-through store in Malaysia.

Japan-based Daiso opens first Canada store

It offers a range of products from Disney-themed items to phone accessories.

Japan's convenience stores' plans for turning around from lower sales in 2020

Convenience chains are focusing on returning to a growth trajectory.

Alibaba rolls out measures easing merchant operations

Taobao will waive deposit fees for new merchants, with refunds for existing sellers.

Alibaba's Kaola Global to co-create 500 products in 2021

This comes as more users shop for specialty imports, such as juices from Cuba.

Singapore's homegrown retailer Naiise closes doors after disastrous financial year

Founder Dennis Tay is expected to file for personal bankruptcy.

Contact me about the awards