aldi research, page-11

Why can't they grow same store sales? If traffic increases every month, year, then sales will increase as well.

If you have ever visited a Aldi store on a Wed or Sat morning, there is a queue lining up outside the store, waiting for the doors to open to buy the special deals they have on. You never see a line up outside a major supermarket. Aldi business model is very clever. They get customers in to buy their special deals, who then buy their groceries and then become a loyal shopper, where they shop there first and pick up other items at one of the major supermarket.

Aldi will set up a distribution centre in Perth, just like other major players have, so their logistic cost will not increase, they will be no different to the other players when comparing.

Wow has not kept pace with the changes that shoppers want and that is reflected in a business model that has been the same for decades. Aldi and Costco have initiated different business models and Coles changed theirs, from one similar to WOW, to cutting prices of consumer staples, starting with milk, years ago and that has seen a turn around in the sales and patronage increase.