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Aldi planning to cross into China by 2018

RBR Staff Writer Published 24 November 2014

The 100-year old German discount chain Aldi is planning to expand into China, where many western retailers such as Carrefour and Tesco have found the going tough.

Aldi

Aldi will be stepping into its fourth continent with this move, after Europe, Australia and America.

Although the discount retailer's family owners have given the nod, no particular time has been decided upon. Aldi will most likely be launching Chinese operations after 2018, according to analysts at the consultancy firm Planet Retail.

Planet Retail research director Matthias Queck said: "Aldi thinks in decades rather than years, so the general conditions and the long-term outlook with higher single-digit growth rates in real terms look promising."

But it has still not become a discounter's market in China. Shanghai Nonggongshang, the domestic retailer, is the biggest in the sector with Spanish grocery retailer Dia (part of Carrefour earlier) coming second.

Planet Retail's China analyst, Yujun Qiu, said: "The big challenge will be how Chinese consumers will react to Aldi's private-label ranges. Many are sceptical when it comes to retailers' own brands and prefer the well-known manufacturer brands instead."

German business monthly, Manager Magazin, revealed the minutes of a meeting of the Aldi Company Committee (Aldi-Unternehmensausschuss or AUA) in which Aldi Nord and Aldi Süd form the two wings. Aldi Süd has been given approval to take on China, while Aldi Nord has the choice of picking its next two countries for expansion.

Aldi, which is giving UK's traditional grocery stores such as Morrisons, Tesco and Sainsbury's a run for their money, will be making its California debut in 2015 with intentions of erecting a warehouse around Los Angeles.


Image: Aldi Nord interior. Photo courtsey of de:Benutzer:Kira Nerys - first published at the German Wikipedia.