Is Aldi a threat to Woolworths

Is Aldi a threat to Woolworths? With almost 950 supermarkets, 900 liquor stores and control of 39% of the grocery market in Australia, Woolworths is a giant of domestic retail. The size, dominance and profitability of the business has made it a fine investment for decades but, more recently, there has been concern that the era of domination might be over. Sales growth has slowed; Coles has been reborn as an effective competitor while Aldi and Costco are growing market share. Aldi, in particular, generates fear bordering on hysteria among investors. The German upstart has come from nowhere to earn 10% of the local grocery market and already operates 350 stores earning revenues of $4bn. Some claim that a model of lower prices, less inventory and simple logistics have upended the traditional grocery model and now threatens the incumbents, Woolies and Coles. (VIEW LINK)