International discount supermarket players, Lidl and Netto have poured cold water on speculation they may enter the Australian sharemarket in the short-term.
Despite reports the two may be scouting local sites, they've told SBS World News, there are no plans to open here.
In an email, Head of Netto International Finance, Shahriar Bakhshpour said, "We evaluate all interesting markets on a recurring basis. However, we have no plans to start operations on the Australian market."
Lidl UK's PR Manager, Georgina O'Donnell told SBS World News, "Lidl is not currently considering expansion into the Australian market.”
A few weeks ago, a report by Commonwealth Bank analyst Andrew McLennan was quoted as saying, that there is room in Australia for a second discount grocery chain.
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Aldi currently operates in that space, competing with larger, more traditional players Woolworths, Coles and Metcash in the $88 billion Australian grocery market.
Researchers at Roy Morgan are currently updating their analysis of the industry, but its latest report shows that ALDI quadrupled its customer base over the last eight years from under 1 million, to 4.2 million people shopping there every week.
10.3% of all shopping dollars was spend at ALDI as of December 2013. While it trails behind Woolworths and Coles, it has overtaken Metcash, the operator of most IGA stores.
