Another nail in the coffin for independent supermarkets

Aldi is now the most profitable supermarket retailer in Australia, with EBIT at six per cent, against 4.6 per cent reported by Coles, and 5.4 per cent reported by Woolworths. On top of being more profitable, Aldi also retains prices at a level 20-30 per cent below that of Coles and Woolworths. Clearly Aldi is outperforming the incumbent supermarket operators. To understand how such a performance gap is possible between seemingly similar shop formats, consider just one critical factor: the strate

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