Aldi, the German discount supermarket chain, has over 10,000 stores worldwide, including more than 500 stores in Australia. However, none of these stores are located in Tasmania, the island state of Australia that has a population of about 540,000 people and a capital city of Hobart. In this article, we will explore whether Aldi is coming to Tasmania and the reasons for their decision not to expand to the island state.
Is Aldi coming to Tasmania?
Unfortunately, Aldi has no plans to open stores in Tasmania or Hobart as of now. The last official statement from Aldi’s corporate headquarters was made in 2019 when they confirmed that they would not be expanding to Tasmania or Hobart. Since then, Aldi has not made any further announcements to contradict their earlier statement.
Why is there no Aldi in Tasmania?
The reasons for Aldi’s decision not to expand to Tasmania or Hobart are not clear, as they have not stated specifically why they have not opened locations on the island state. However, there are several possible factors that could have influenced their decision:
- Strong competition from other grocery retailers: Tasmania already has well-established and strong competition from other grocery retailers such as Woolworths, Coles, and IGA. Aldi may have faced difficulties in gaining market share and customer loyalty in the highly competitive market.
- High logistics and transportation costs: The logistics and transportation costs of delivering goods to an island state may have been too high for Aldi’s low-margin business model. Additionally, Aldi may have faced challenges in sourcing local products and suppliers.
- Small market size and uncertain demand: The market size and demand for Aldi’s products and services may have been too small or uncertain for Aldi’s expansion strategy. As a result, they may have preferred to focus on other regions with higher population density and growth potential.
- Cost of living: The cost of living on Tasmania is slightly cheaper than on the Australian mainland. While some shoppers still find grocery prices high, there are plenty of supermarket choices for shopping around and finding the best value.
In conclusion, Aldi has no plans to open stores in Tasmania or Hobart at this time. While the reasons for their decision are not clear, the strong competition from other grocery retailers, high logistics and transportation costs, small market size, and uncertain demand may have played a role in their decision. Despite the absence of Aldi in Tasmania, shoppers still have plenty of options for grocery shopping with other supermarket chains operating on the island state.
Table: Comparison of Major Grocery Retailers in Tasmania
| Retailer | Number of Stores | Year Established | Headquarters |
|---|---|---|---|
| Woolworths | 29 | 1924 | New South Wales, Australia |
| Coles | 23 | 1914 | Victoria, Australia |
| IGA | 25 | 1988 | Chicago, Illinois, United States |
| Costco | 1 | 2018 | Washington, United States |
| Foodworks | 5 | 2004 | Queensland, Australia |
| Hill Street Grocer | 7 | 2001 | Tasmania, Australia |
| Ritchies Supa IGA | 1 | 1870 | Victoria, Australia |
Why is there no Aldi in Tasmania?
Aldi, the German discount supermarket chain, has over 10,000 stores worldwide, including more than 500 stores in Australia. However, none of these stores are located in Tasmania, the island state of Australia that has a population of about 540,000 people and a capital city of Hobart. In this article, we will explore the possible factors that could have influenced Aldi’s decision not to open stores in Tasmania.
Cost of Living
The cost of living on Tasmania is slightly cheaper than on the Australian mainland. While some shoppers still find grocery prices high, there are plenty of supermarket choices for shopping around and finding the best value. This could mean that Aldi may not have seen Tasmania as a profitable market to enter.
Competition from Other Grocery Retailers
The competition from other grocery retailers such as Woolworths, Coles, and IGA is strong and well-established on Tasmania. Aldi may have faced difficulties in gaining market share and customer loyalty in the highly competitive market. It could be that Aldi decided not to enter the market due to the strong competition and the difficulty of competing with established retailers.
Logistics and Transportation Costs
The logistics and transportation costs of delivering goods to an island state may have been too high for Aldi’s low-margin business model. Additionally, Aldi may have faced challenges in sourcing local products and suppliers. The cost of setting up a distribution network in Tasmania could have been too high for Aldi, which focuses on keeping costs low for customers.
Market Size and Demand
The market size and demand for Aldi’s products and services may have been too small or uncertain for Aldi’s expansion strategy. As a result, they may have preferred to focus on other regions with higher population density and growth potential. Tasmania’s population is relatively small, and there may not be enough demand to make it a profitable market for Aldi.
Tasmania has a low cost of living, particularly when compared with the Australian average. However, this doesn’t mean Tasmanians will be able to afford more options for their groceries.
Aldi, which established an Australian market presence in 2001 and currently holds 12.5 per cent of the market share on that continent, has made Tasmanians question: Does Aldi Come to Tasmania or Hobart? You might be surprised at the answer.
Is Aldi Coming To Hobart Or Tasmania In 2023?
Aldi’s corporate headquarters issued an official response to Tasmanian hopefuls. It said that no stores would be opened by the German discount retailer in Tasmania, or in Hobart.
Aldi’s corporate headquarters hasn’t made any other announcements since that statement
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- For more details on why Aldi hasn’t come to Tasmania and Hobart, read this! To find out about other locations where they might open stores, as well as information about the best places to get discount grocery items in Tasmania, keep reading!
Aldi Isn’t Coming to Tasmania and Hobart?
Aldi never stated specifically why locations were not opened in Hobart
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First, the cost of living on Tasmania is slightly cheaper than on the Australian mainland; while some shoppers still find the grocery prices high , there are plenty of supermarket choices for shopping around and finding the best value
.
Combining this with Tasmania’s low population – 250,000 people in Hobart are the capital, which is about half of all island’s population – and a low density population (7
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24 per sq km), doesn’t make it sound like Aldi would be happy in such a market
.
The island’s small size could mean that it is difficult for people to locate suitable places
. However, many other cities all over the globe are very built-up and there is no place for any new business except in cases where old buildings have to be demolished.
Aldi has a corporate website which states they are very specific about where and what market it is. This could be why they may wait to expand their market share elsewhere in Australia.
Is there a potential location for Aldi Stores to open in Tasmania or Hobart?
Hobart is the best choice to be Aldi’s first location in Tasmania.
On another thread, commenters in the Bring Aldi to Tasmania page mentioned Devonport and Launceston.
Are there people who want Aldi stores in Hobart or Tasmania?
Hobartians and Tasmanians are very passionate about Aldi.
Many are puzzled by the fact that Australia has over 500 Aldi locations, some in rural areas.
ABC network’s Hobart local news asked residents what they’d like to see in their city; along with Ikea and Costco, Aldi ranked right up there .
One respondent said Aldi would make Hobart “cleaner”, compared to existing grocery stores.
Sarah Blockley, a woman from Australia, started a petition at change.org asking for Aldi’s return to Tasmania.
- She wrote, “Don’t you think it is a little unfair that very rural towns such as Casino in NSW have an Aldi store but Aldi stores…currently have no plans to bring a single store to Tasmania?”
Aldi’s special purchases made it possible to her family buy things she needed, and they were able get amazing discounts on these items.
Although Ms. Blockley wasn’t able to get 262 signatures for her petition, it is obvious that she has a passion for this cause.
What other places can people shop than Aldi Hobart and Tasmania?
In reference to Tasmania’s many supermarket choices, the word “monopoly”, is used repeatedly.
- It includes Woolworths as well Coles.
In Hobart, there are lots of lovely smaller shops, including City Organics, a very highly ranked all-organic market whose products remind me of Aldi’s Simply Nature, Earth Grown and liveGfree labels.
Aldi might interest you if you are interested in learning more about it.
- Conclusion
Aldi, to the dismay of Tasmanians, stated that they did not plan on opening a store in Tasmania, or Hobart. The supermarket chain also said that it had never made any changes since.
However, German supermarkets have experienced an international boom in recent years.
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Aldi Tasmania: Are They Coming To Hobart Or Launceston? (2022)
| Reason | Description |
|---|---|
| Cost of Living | Cheaper in Tasmania than mainland |
| Population | Low population in Hobart |
| Population Density | Low density of 7.24 per sq km |
| Location | Difficult to locate suitable places |
