Aldi makes huge change to its stores as supermarket giant axes 20 per cent of its products
Aldi is set to cut around 20 per cent of its product range, including items from its popular weekly "Special Buys", as the discount supermarket chain fights to shore up profits amid growing competition from Woolworths and Coles. Kids' toys, kitchen appliances and cultural food ranges could reportedly be among the products dropped, though Aldi has not confirmed specific details. The move comes as analysts note Aldi's declining appeal with shoppers, despite it remaining significantly cheaper than its two largest rivals.
Aldi's chief commercial officer, Jordan Lack, said reducing the number of products sold allows the chain to operate more efficiently and pass savings on to customers through lower prices, citing recent permanent price cuts to its meat range. Analysts pointed to a shift away from stocking well-known brands as a factor behind falling consumer perceptions of Aldi, alongside a broader pullback from value-seeking shopping habits. Figures show Coles and Woolworths were around 9 per cent more expensive than Aldi last month, while Aldi's sales rose to $13.94 billion last year even as profits fell nearly 20 per cent to $337.4 million.
- Aldi to cut roughly 20% of its product range to boost profits
- Special Buys items like toys and appliances may be affected
- Aldi's profits fell 20% despite sales rising to $13.94bn
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Aldi is one of Australia's big discount supermarket chains, known for selling groceries more cheaply than rivals Coles and Woolworths, partly by keeping a smaller range of products and running rotating "Special Buys" deals on non-food items. It has built a loyal customer base around this value-for-money reputation, even as Coles and Woolworths dominate the overall market.
The changes being reported involve Aldi trimming a large portion of what it stocks, a decision company executives say is aimed at running the business more efficiently and keeping prices low. This comes at a time when Aldi's profits have fallen even as its overall sales have grown, and industry analysts have raised questions about whether shoppers still see it as offering the same value it once did.
This matters because supermarket pricing and competition are closely watched issues in Australia, where the cost of groceries has been a major concern for households. Any shift by a major discount chain like Aldi has the potential to affect how much choice and price competition shoppers have when doing their weekly shop.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of Aldi's approach argue that a leaner product range is precisely what has always underpinned the discount model's value proposition: fewer lines mean greater buying power per product, lower handling and logistics costs, and ultimately savings that can be passed directly to shoppers, as evidenced by the chain's recent permanent price cuts to meat. In a cost-of-living squeeze, they would say, disciplined focus on core essentials rather than a sprawling catalogue is what keeps Aldi meaningfully cheaper than Coles and Woolworths, and doubling down on that efficiency is a rational response to margin pressure rather than a retreat from customers.
The case against
Critics, however, would argue that trimming a fifth of the range risks eroding the very appeal that built Aldi's loyal following, particularly if it means losing the surprise and variety of Special Buys, kids' toys, kitchen gadgets and culturally diverse food lines that shoppers increasingly value alongside price. They would point out that analysts already link Aldi's declining consumer favour to a retreat from recognisable and diverse stock, so narrowing choice further could alienate exactly the customers Aldi needs to win back from bigger rivals, trading short-term efficiency for long-term relevance in a market where shoppers have more options than ever.