People are too scared about Aldi and Costco!In my opinion Aldi...

People are too scared about Aldi and Costco!

In my opinion Aldi and Costco are competitors with each other and are in a different market, albeit with overlap, to woolworths and coles. aldi and costco both serve up their goods on palettes and have few staff. as I understand it they both close early (no 24 hour Aldi that I know of). They both have a limited range (obviously costco is bigger but grocery-wise I assume it's still limited). If you've been to Conga foods in VIC you will understand the model, fewer items, no choice within category, but the reward is deep discounts.

Coles and Woolworths are statistically closer to your house, offer vastly more choice, more staff, longer hours, they have petrol discounts and reward cards and barbecues on saturdays and are basically way more integrated into your life after how many decades they've been in your area.

There is definitely overlap between the two models and Aldi/Costco may eat into Woolworths' market share, but they at least have a more efficient distribution system than Coles and will be able to compete with their home brands anyway.

I think that if WOWs recent falls are because of concerns about Aldi, it's a total overreaction.