Aldi asserts rivals are impeding real estate access

MMR, July 21, 2008

SYDNEY -- Aldi Group has accused its major supermarket competitors Coles Group and Woolworths Ltd. of blocking its access to suburban shopping centers in Australia. The Germany-based discount grocer has called on the Australian Competition and Consumer Commission to investigate.

According to published reports, Aldi contends that the two retailers use their shopping center lease contracts to control other tenancies by demanding huge cuts in rents if direct competitors are granted space. As a result, Aldi maintains, its ability to open new stores has been restricted.

However, Milton Cockburn, executive director of the Shopping Center Council of Australia, denied Aldi's charge, pointing out that the company has opened 167 supermarkets in seven years.