‘Fair level’: Aldi senior exec says supermarket competition extends beyond Coles, Woolworths

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‘Fair level’: Aldi senior exec says supermarket competition extends beyond Coles, Woolworths

‘Fair level’: Aldi senior exec says supermarket competition extends beyond Coles, Woolworths

The boss of national buying for Aldi says there is sharp competition in Australia’s supermarket sector — extending beyond Coles and Woolworths into big-box retailers.

Jordan Lack on Monday said while Aldi primarily monitored Coles and Woolworths’ pricing, it also occasionally reviewed IGA and Costco, and observed Chemist Warehouse and Bunnings pricing in certain categories — like health and beauty, and pet products.

The German supermarket did not deem IGA as a price competitor.

“I think the other big growers in the grocery landscape are . . . all the big-box retailers, we’re seeing other retailers such as Bunnings enter some of the grocery categories,” Mr Lack said.

Alongside other Aldi senior executives Oliver Bongardt and Andrew Starr, Mr Lack over a two days will be questioned by the Australian Competition and Consumer Commission as part of its latest round of hearings into supermarkets.

“We are one of those competitors who have grown well over the last couple of years as customers are seeking greater value,” Mr Lack added.

“We do have a fair level of competition and we’re happy to have played a role in growing that.”

Coles and Woolworths control 65 per cent of the grocery market, while Aldi holds about 10.5 per cent.

Mr Lack also said the cost of food and groceries for consumers had risen in recent years.

“We are in an inflationary environment and consequently, consumers would have seen increases across all retailers over the last few years,” he said.

“I can also say from a business perspective, we’ve seen cost inflation over that same period for the cost of our goods.”

The inquiry — which kicked off last week — has already heard from consumer advocacy groups, like Choice, and supplier representatives.

Executives from Coles, Woolworths and IGA’s parent company Metcash will also front the inquiry in the coming days.

The ACCC’s inquiry is separate to its legal proceedings against Woolworths and Coles over alleged fake discounts.

The competition watchdog in September launched legal action against both grocers, accusing them of misleading inflation-battered customers on “illusory” discounts.

The inquiry will not look at these matters or ask witnesses to talk on the issues before the courts.

A final report from the ACCC on the supermarket sector is due by February.

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