Dick Smith closes his grocery line, accusing Aldi of being unbeatable

million. Smith said that he believed that the aggressive model of low cost Aldi would eventually defy the Australian giants Coles and Woolworths.

"Unless Coles and Woolworths coincide with Aldi by reducing their product range to around 1,700 lines," Smith said that Aldi was maintaining a low cost not just by supplying it at low prices. Overseas foodstuffs, but also by reducing the number of products that she was selling.so that he did not need as many staff to store his shelves and maintain his stores. The money saved in employment costs was then redirected to the private owners of the company, said Tom Daunt, general manager of Aldi Australia, claiming that the supermarket chain has a purchasing policy in Australia. "srcset =" https://static.ffx.io/images/$zoom_0.53%2C$multiply_0.7252124645892352%2C$ratio_1.776846%2C$width_1059%2C$ x_0% 2C $ y_37 / t_crop_custom / t_sharpen% 2Cq_auto% 2Cf_auto / 4c0fee981a0a3c3c286e985df46540adc692a09f "itemprop =" image "/>

"You have this company that has now been voted the most trusted brand in Australia … Most people do not know that it's a private German company that works on the principle of getting fired people and import the absolute lowest countries in the world, "he said.

As an example, he said that Dick Smith Foods' peanut butter Local growers sold for $ 1.28 per 100 grams, while its Aldi competition sold for 48 ¢ for the same amount.

He said that when Aldi entered the Australian market, he bought much of his grocery line from Australian producers. that it was established It relied on low-cost international producers

. On Wednesday, Mr. Smith sent a letter to the general managers of the Coles and Woolworths supermarkets, as well as the chief executive of Metcash Group, which controls IGA, to explain his decision. The letter included a chart that showed how sales of Dick Smith Food had fallen in Australia since 2001 at a rate similar to that of Aldi 's business figure.

"By chance of birth [Aldi’s owners] are multi-billionaires when we have five million" It seems we can not do anything about it, but simply modern extreme capitalism. "

Mr. Smith also wrote Aldi owners, Karl Albrecht and Beate Heister, through Aldi Australia CEO Tom Daunt, to outline his concerns about the impact of Aldi Australia.

"Karle and Beate, I understand that you are the son and daughter of Mr Karl Albrecht Snr, who came With the" plan "of Aldi, that is to say the sharing of With less wealth, your father, who initiated the great expansion of the business, understood that by choosing fewer products, you could employ fewer workers

. "I have an important question to ask you. When will it be enough?"

He accused the family of running a secret company that he had used to accumulate a personal fortune of 40 billion dollars, and invited them to come to Australia to explain their long-term plans. What I want to know … is their plan to continue to expand here and take the market place? I suspect it. "

In a letter to Fairfax Media, Mr. Daunt stated that Aldi had" never "sought to" maximize "the profits to the detriment of something or someone else. ;other. "

Gambling. If you establish a true partnership with suppliers, you will develop long-term prosperity for both parties for the benefit of customers, and if you take care of your employees, they will enjoy going to work and they will will love to take care of customers.

"We proudly support a first purchasing policy in Australia and have shared our growth with hundreds of Australian manufacturers and thousands of employees." We are not a company trying to artificially accelerate market share and we are not trying to match the number of stores of our competitors. We do not cut corners, we do not abuse our market power, we do not mislead our customers. We do not avoid tax payments, we do not understand our suppliers. We keep things simple and focus on what matters most to consumers.

A spokesman for Woolworths told Fairfax Media: "Dick Smith Foods is an iconic Australian brand that many of our customers love and support. to hear this news.

"More and more of our customers are telling us that a unique approach to supermarket going does not meet what they want or need.

" This is why our long term The vision is to expand the range of products we carry on our network, so that we can offer our customers more tailored ranges adapted to the local market. "

Dick Smith Food was established in 1999 as part of Smith's support of Australian farmers and employees and made sales of about $ 480 million, but Mr. Smith never withdrew a penny of the business, but donated $ 10 million in profits to various causes, most recently a $ 1 million donation. to the Country Women's Association for Drought Despite his own fortune, Mr. Smith has long called on the wealthiest citizens of Australia to pay higher taxes and to give more in philanthropy [19659020]. [ad_2]
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