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Aldi is intensifying its supermarket attack against Woolworths and Coles

Ralph Orlowski/Getty Images

Discount supermarket group Aldi is intensifying its attack on big players Woolworths and Coles by increasing the number of stores it plans to open.

The German chain, now estimated to have 11% of the Australian market, told Business Insider it has a target of 25 new stores on the eastern seaboard in 2016.

And it’s short-term expansion plans will see up to 20 stores open in both South Australia and Western Australia.

The supermarket operator said the investment for Western Australia and South Australia is $700 million. Long-term expansion plans will see up to 120 new stores across those states.

Aldi currently has 396 stores nationally, less than half the 961 at Woolworths but more than half way to catching Coles at 776.

Aldi employs about 9000 people and has doubled its revenue since 2010 to about $6 billion.

“While we are eager to bring the Aldi difference to more shoppers across the country, store openings will be dependent on site acquisitions, planning approvals and construction timelines,” an Aldi Australia spokesperson said.

“When establishing a new store, Aldi considers the long term potential of the area and population numbers.”

The two big supermarket players, Woolworths and Coles, are feeling the competitive heat from Aldi.

Woolworths is feeling it most. At Coles, food and liquor sales were up 5.3% for the 2015 year. At Woolworths, Australian food, liquor and petrol could only manage 2.1% growth, less than inflation.

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