Grocery giant confirms interest

No-frills grocery giant Aldi has confirmed it is eyeing the New Zealand market.

If the German chain decided to expand in New Zealand it would break the duopoly between Foodstuffs (which owns the New World and Pak'n Save stores) and Progressive Enterprises (which owns the Countdown, Woolworths and Foodtown stores).

Retail experts predict a third supermarket operator would lead to lower prices, as well as driving diversity in the types of stores on offer. It could also hamper any plans discount retailer The Warehouse might have to expand its grocery offering.

The Business Herald reported yesterday that Aldi, which has more than 5000 stores worldwide, had filed almost 130 applications to trademark its brands in New Zealand since February.

In a written response to inquiries about the trademarking, Aldi group managing director Michael Kloeters said: "With regards to the potential entry into the New Zealand market, we would like to advise that this is being investigated, hence we are unable to make any further statement on that matter."

Richard Umbers, managing director of Progressive Enterprises, said Aldi was widely expected to come to New Zealand eventually.

He was "not at all surprised" to hear confirmation that Aldi was considering the move.

Aldi opened its first Australian store in January 2001 and now has about 100 stores.

The Aldi stores sell house brand goods and carry about 1000 product lines, compared with up to 25,000 lines at standard supermarkets. The stores also feature offerings such as heavily discounted electrical goods which change weekly - but with minimal staffing, customers can face long waits at peak times.

One retail analyst said Aldi had displaced discount chain Franklins as Australia's low-cost operator and had prompted major supermarkets to expand their house-brand ranges.

"Have they got market scale and presence? No. Have they had an impact? Yes."