Our supermarket love affair could be about to fizzle out if Dick Smith is to be believed.
While we may line up outside Aldi for each new catalogue and dutifully walk up and down the aisles of our local Coles and Woolworths, according to Dick that will end in 10 years time.
Even worse – our love affair with their bargain basement prices could be to blame.
After Woolworths came under fire for ending its canned tomato contract with SPC yesterday, the veteran businessman came in defence of the retailer.
Talking to Fairfax, he said the supermarket giant didn’t have much choice in the matter.
“What happened with SPC, that was driven by the fact Woolworths and Coles are desperately trying to get their costs down, because they are losing business to Aldi,” he said.
“They’ve either got to get their costs down or match Aldi by substantially reducing staff and their product range.”
Aldi employs around 15 to 20 staff in its stores, compared to an average of 100 in other supermarkets.
Dick said that Aldi’s low prices and continual expansion would eventually send at least one, if not both Coles and Woolworths, out of business.
Not everyone is so quick to agree however.
One retail analyst suggested that while it was likely Aldi would have more stores, the business models would provide a point of difference, with smaller stores appearing alongside full service stores.
Coles and Woolworths currently have an 80 percent market share in Australia.