Supermarket chain Aldi is planning to expand into China, taking the discounter into its fourth continent. The German family owners of Aldi are reported to have agreed to the move, but at the time of print no timeframe had been set for the expansion.
The new plan was revealed in minutes of meetings between the two arms of the business – Aldi Nord and Aldi Süd. According to German business journal, Manager Magazin, Aldi Süd will take on the China venture.
The supermarket group, which is piling pressure on traditional grocers in the UK including Tesco, Morrisons and Sainsbury’s, is scheduled to make its debut in California in 2015, where it is building a warehouse near Los Angeles.
The Chinese market has proved tough for many western retailers including Tesco and Carrefour. Yujun Qiu, Planet Retail’s China analyst, said: “The big challenge will be how Chinese consumers will react to Aldi’s private-label ranges. Many are sceptical when it comes to retailers’ own brands and prefer the well-known manufacturer brands instead.”
Industry analysts say Aldi is not likely to start operations in East Asia before 2018.