Supermarket giant Aldi has announced a surprising new business venture designed to deliver Aussies “competitive prices” at a time when many are struggling amid a cost of living crisis.
Supermarket giants could face billions in penalties for abusing their market power under proposed changes to the Grocery Code of Conduct.
The review was conducted by former Labor minister Craig Emerson.
His report stated that there was “A heavy and persistent imbalance in bargaining power between supermarkets and their smaller suppliers.”
“This Review’s recommendations to make the Code mandatory, with heavy penalties for major breaches will, alongside effective enforcement of the existing competition laws, constitute a far more credible deterrent to anti-competitive behaviour than forced divesture laws.”
In 2022/23, Woolworths held a 37 per cent market share, 28 per cent Coles, 10 per cent Aldi, 7 per cent Metcash and 18 per cent other.
The supermarket giant on Wednesday announced it was expanding into the insurance sector with the establishment of Aldi Insurance.
Aldi Insurance will offer a range of politics to customers, including home and contents insurance, comprehensive car insurance and landlord’s insurance.
Aldi has revealed its new business venture, Aldi Insurance. Picture: NCA NewsWire / Jeremy Piper
Group Director of Aldi Australia Rodney Balech said the company was “excited” to be expanding on its “Good Different” offering into new categories to bring “even more savings to Aussies at a time when they need it most”.
“We know that Australians have been calling for a trusted insurance provider that not only provides a reliable and accessible service but also doesn’t break the bank,” he said in a statement.
Partnering with Honey Insurance and RACQ Insurance, Mr Balech said Aldi Insurance will deliver a “straightforward product with exceptional value”.
“Just like our grocery offering, we won’t be engaging in one-off rewards or conditional discounts, we want to bring to the insurance market what we have successfully delivered in our grocery operations – a trusted, high quality product, with Aussie insurance partners that delivers every day competitive prices for customers,” he said.
The ABS recently revealed annual insurance prices soared 16.4 per cent in the last 12 months. Picture: Getty Images
The German retailer said Aldi insurance customers can get an insurance quote in three minutes and can expect “no hidden exclusions buried in the fine print”.
“Customers getting stung by increasing premiums simply because they didn’t shop around is a trope of traditional insurance,” Mr Balech said.
“ALDI’s insurance philosophy, like its grocery offering, is a high quality product at the best possible price point, for every single customer whether they are a long-term ALDI Insurance customer or brand new.”
The first Aldi store opened its doors in 1913 in Essen, Germany, with its first Aussie shop welcoming customers in 2001.
There are now more than 570 Aldi stores across Australia out of some 10,000 locations around the world.
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Aldi’s announcement came after the Australian Bureau of Statistics recently revealed annual insurance prices soared by an average of 16.4 per cent in the last 12 months.
The statistic marks Australia’s strongest annual rise in insurance premiums in 23 years since the March 2001 quarter.
According to a separate Finder report, published in May, the average home insurance premium has increased by 19 per cent in the last 12 months.
More information about Aldi Insurance can be found on its website.