Discount retailer Aldi is on its way to Western Australia and South Australia in a $700 million expansion plan that will see it build two distribution centres and up to 120 stores in the two states.
The move could prove to present a major challenge to the Coles' and Woolworths' duopoly and increase the pressure on independent retailers.
Aldi has appointed construction firm Georgiou Group to build a 45,000 to 50,000-square-metre distribution centre at Jandakot Airport in WA that is capable of supplying as many as 100 stores.
It has also contracted Badge to build a 35,000 to 40,000-square-metre distribution centre at Regency Park, SA, which will supply up to 50 stores.
Work in SA will begin this month while construction on the WA site will begin in November 2014.
Aldi said the combined value of the contracts is over $100 million, while the total project value of $700 million includes the distribution centres, stores and additional infrastructure.
Badge managing director, Jim Whiting, and Georgiou group general manager building, Frank Dilizia, said the projects will establish Aldi’s presence, and form the basis for its expansion, in the two states.
