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Aldi boss shares tricks to staying cheap

9News.com.au logo9News.com.au 3 days ago

With the Christmas season looming and living costs on the rise, an increasing number of Aussie families are switching to Aldi in search of savings on their grocery bills.

Australian boss Tom Daunt has for the first time revealed tightening budgets play into the supermarket giant’s strategy by driving prices down with ongoing efficiencies.

“We don't offer 12 or 15 peanut butters - we offer two. You can have smooth or crunchy, but we make sure that's a really high-quality product,” the CEO of Aldi Australia told 9NEWS.

“Australians don't want cheap products that are nasty. And we have never, ever been in that game.”

In 16 years, the supermarket giant has pinched $8 billion of supermarket sales from Coles and Woolworths.

According to Mr Daunt, this means everyone is a winner.

“They're benefiting because the increased levels of competition we have brought have really forced all market participants to sharpen up,” he said.

Sharing his tricks of the trade, Mr Daunt pointed to packaged goods in the fruit and vegetable aisle.

“It adds a tiny bit of incremental cost to have packaging, but it keeps the product quality fresher and keeps customers' hands off the product,” he said.

Packaged fruit and vegetables are also quicker to pack and scan at the check-out – which are designed to be fast.

“We have long check-outs - physically long check outs - but you'll notice hopefully the queues aren't long either,” he added.

As the supermarket giant prepares to open its 500th store, challenges lie ahead with the looming launch of Amazon and German rival ‘Kaufland’ opening its first store in South Australia.

But according to Mr Daunt, Aldi’s formula isn’t budging.

“That won't change with the entry of another couple of competitors or anyone else,” he said.

Shoppers can look forward to a burgeoning “special products” aisle this festive season – another Aldi strategy that houses items from ski gear and gardening equipment to Christmas lights and lobster tails.

“They will be back this Christmas. They were hugely successful last year. We had queues out the door,” Mr Daunt said.

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