ALDI’s contribution to Queensland
02 May 2019
ALDI Australia has today released a new report measuring the impact of its entry into Australia and the contribution it has made to local economies over the past 18 years.
The report found that in 2018, ALDI’s operations contributed $3.2 billion to Australia’s gross domestic product (GDP). Since entering the market in 2001, PwC estimates that ALDI has made a total contribution to GDP of almost $23 billion ($22.983 billion).
Prepared in partnership with PwC, Making a Good Difference: how ALDI contributes to the Australian Economy, not only examines ALDI’s positive effect on competition, but also its wider contribution to employees, shoppers, business partners and its extended supply chain.
ALDI’s first Queensland stores opened in Chermside and Salisbury in 2004. By the end of 2018, ALDI operated 112 stores and two distribution centres in Queensland, providing 2,459 direct jobs to the state economy. This equates to a state employment contribution of $188 million for last year.
“Our journey in Queensland began more than fifteen years ago with just two stores and today we are proud to have contributed more than $438 million to the Queensland economy,” said Joanne Brown, Managing Director of Queensland for ALDI Australia.
“Since day one we have always worked responsibly, ethically and collaborative with our local suppliers and employees to create a positive impact on the local economy and community. In forging these unique, strong and long-term partnerships we have been able to provide thousands of career opportunities to local communities. Together our stores, suppliers and employees enable us to carry out our mission to bring high-quality, locally produced products at the lowest prices, to communities around the state,” Joanne added.
In Queensland alone, ALDI’s investment in local businesses totaled an economic contribution of $186 million. ALDI’s business partners employ 1,246 Queenslanders and partnerships with ALDI have helped these businesses grow and create employment opportunities in local communities.
Queensland run family businesses such as Golden Cockerel have benefited from ALDI’s commitment to supporting its local suppliers. Golden Cockerel was founded in 1972 in Mount Cotton, Queensland and has been supplying fresh poultry to ALDI’s Queensland and NSW for the last four years.
Golden Cockerel’s partnership with ALDI has enabled the company to experience continued growth, originally supplying around 40 tonnes of chicken, today they supply 100 tonnes every week to ALDI stores. Due in part to the partnership, the business has been able to invest $40 million to upgrade their plant facilities, with this new plant considered to be the most innovative in the country.
“We’re a family business, the ethos of the company is to provide safe nutritious chicken that is of the very best quality. Four years ago we were approached by ALDI, we took up the opportunity to supply them and the business has grown over those four years dramatically,” said Alan Wilson, CEO of Golden Cockerel.
“Our businesses hold the same values of simplicity and efficiency – we get on with the job and do it right. Chicken has the lowest carbon footprint of any of the meat proteins and here at Golden Cockeral we are very determined to make it a sustainable business that doesn’t put much pressure on the environment.”
PwC has found that ALDI’s entry to the supermarket sector almost two decades ago has increased competition in a sector where economies of scale have previously kept the market highly concentrated.
The report highlights that ALDI’s entry into Australia has driven a significant price deflation, resulting in savings for all grocery buyers. Comparative basket analysis revealed that in 2018 ALDI saved its customers across the country $2.2 billion by choosing to shop with them over the major supermarkets. Furthermore, ALDI had a downward force on the price of all groceries resulting in savings of $450 million for customers that chose to shop elsewhere.
ALDI is consistently rated as the most desirable partner by Australia grocery suppliers. ALDI commissioned independent research to observe its engagement, performance and capability with its business partners against other prominent retailers. ALDI’s business partners voted ALDI’s commercial conduct to be 80% more favourable than its nearest major competitor*
This research demonstrates the trust built by ALDI with local business partners through a net favourable score – which shows the proportion of suppliers that rated ALDI the most favourable supplier to deal with compared to two other retailers.
In 2019, ALDI will continue to improve its operations by refurbishing 20 Queensland stores to its new format look. This year will also see ALDI’s product range continue to grow, bringing with it more opportunities to partner with local businesses and offering customers an increased range of Australian made products.
*Advantage Supplier Feedback Program