Aldi is now selling millions of dollars worth of top end brand products on their specials shelves as retailers such as Coles struggle to take them on with housebrand products.

The German retailer is applying pressure to archrivals Coles and Woolworths as well as the big discount stores because consumers trust them and already know that Aldi sells special products cheaper than their rivals.

Coles has been struggling to deliver specials similar to what Aldi delivers with the German retail group still working out how to enter the online market a move that could put further pressure on the likes of Big W the Woolworths owned retail group along with Target and Kmart.

In Australia Aldi is slowly growing market share.

While Woolworths and Coles dominates the grocery sector in Australia, with Woolworths holding a 37% market share and Coles a 28% share of Aldi already overtaken IGA Metcash with an 11% share up 4% Vs IGA’s 7% at May 2022.

In the UK where Aldi has been in market longer than in Australia Aldi recently surpassed Wm Morrison to become the UK’s fourth-largest grocery retailer.

The development spells the end of a long period when Tesco, J Sainsbury, Asda and Morrisons dominated the UK sector with a model generally based on wide choice and large out-of-town superstores claims the Financial Times.

In Australia big brand appliance and consumer electronics Companies are now selling product to Aldi including LG Electronics, Samsung, Cygnett, Belkin, Ecovacs along several other brands who were initially loyal to the likes of Harvey Norman, The Good Guys and JB Hi Fi.

In the UK most of Aldi’s market share gains have come since the financial crisis with insiders tipping that the retailer is set to grow share as the Australian market comes under inflation pressure.

Aldi’s strategy is simpler, they deliver high sales volumes across limited product ranges, while also delivering low prices, and operational simplicity.

Aldi learned how to compete in the UK before they entered the Australian market, they are also loyal to suppliers with Companies like Tempo now supplying the retailer in several Countries.

The cost-of-living crisis has provided a boost to discounters as household budgets are squeezed.

Average spends per transaction at Aldi stores, increased by about 10 per cent in the year to September 14, according to figures from Fable Data which tracks credit card transactions.

By contrast, spending at the likes of Coles and Woolworths is coming under pressure.