Costco, Aldi planning Adelaide entry

Posted by Daniel Palmer on 13th July 2009

International retail giants Aldi and Costco have Adelaide in their expansion plans, but are yet to be drawn on a likely entry date.

German-based discount grocer Aldi has grown rapidly along the east coast but has consistently played down talk of a western expansion. In January, Australian Managing Director Michael Kloeters said they had no plans to expand beyond eastern borders. However, they have now told the Adelaide Advertiser that they will branch out to Adelaide in coming years, with the first step to be the development of a distribution centre in the South Australian capital.

“The company will start up in Adelaide but no date has been set,” a spokeswoman for Aldi said.

Costco, the ninth largest retailer in the world, has also advised of Adelaide growth plans, although they will first focus on making an impact in Melbourne and Sydney.

“Adelaide forms part of Costco’s long-term strategic plan in Australia, which includes further Australian locations,” the retailer advised in an email to the Advertiser.

Wholesaler Costco has created quite a buzz since announcing an intention to enter the Australian marketplace but are yet to open their first store, with future expansion to hinge heavily on the success of the Docklands store that is slated to open next month and the yet-to-be announced Sydney store.