Consumer savings are said to be the unwavering focus for McGrath, recently announced as ALDI Australia’s new CEO
ALDI Australia has appointed Anna McGrath as CEO, who takes the reins from former boss Tom Daunt.
McGrath brings experience spanning buying, marketing, and operations in Australia and the United States, most recently serving as the Group Managing Director of ALDI Australia.
The change comes at a time when consumers indicate that grocery prices are adding to cost-of-living pressures. Statista data shows that 43% of surveyed Australians say grocery expenses are a source of stress (as of March 2023) – a notable increase compared to the 29% measured in March 2022.
McGrath noted her understanding of the current price pressures Australians face: “It is not a secret that many Australians are feeling the bite of inflation, more so in the last couple of years than in the last couple of decades. Our entire business is focused on how we can work with our supplier partners to continue to deliver exceptional quality at the best prices in the market.”
While annual CPI is easing (down to 5.4 per cent in June from 6.3 per cent in March, according to the Australian Bureau of Statistics CPI Indicator), the food and non-alcoholic beverages category still holds the second-highest consumer price rises, trailing housing. The ABS June 2023 figures show food and non-alcoholic beverages increasing 7 per cent over the last year.
McGrath comments on the forward-looking strategy, “ALDI’s business model is about saving people money. We aim to cut out unnecessary costs and pass these savings on to customers. This has never been tested more than it was in the past year, and we’re proud that we’ve been able to maintain our price leadership at a time when Australians need it most.”
ALDI Australia operates more than 570 stores in 6 states and territories, employs more than 13,500 people and works with over 1,000 Australian business partners.
The supermarket chain also appears to be gaining market share. According to a survey of consumer goods suppliers compiled by analysts at UBS, and reported by the Australian Financial Review in July, 66 per cent of suppliers believed ALDI had gained the most market share in the previous 6 months. A further 20 per cent thought Woolworths grabbed the most share, with 14 per cent saying it was Coles.
ALDI says it is “keenly aware of the impact that it can have on Australian shoppers’ back pockets”, revealing the “unwavering focus” that McGrath is said to have on what the company terms “Price Leadership”.
McGrath continues, “We have a very strong strategy in place that is resonating with Australian customers, I’m looking forward to bringing ALDI savings to more and more households.”