A new kind of Aldi shop is gaining traction

The Australian grocery market is dominated by Woolworths, which holds a market share of just over 37 per cent, and Coles, which holds close to 27 per cent of the market, according to data platform Statista. Aldi is the third-largest player in the country, holding around 9.5 per cent of the market, while IGA operator Metcash commands close to 7 per cent.

Coles and Woolworths have also been facing price inflation across their businesses over the past 12 months, with both brands acknowledging surging demand for their private label products as consumers try to make their dollars stretch further.

Analysis from UBS suggests that food inflation based on Coles and Woolworths online prices averaged 8.9 per cent in May.

Retail analysts have tipped Aldi to benefit over the next year as consumers rein in their spending.

Analysts at Jarden said in a note last month that based on industry analysis, Aldi’s sales growth will be in the teens over the next 12 months, while the broader grocery market grows by between 5 and 8 per cent.

“The rising focus on value, increases in cross-shopping and general focus on value are seeing Aldi growth re-accelerate, with share of footfall up steadily,” its analysts said in a note to clients in May.

Christie said many shoppers were coming to Aldi for the first time as they contend with rising costs. He said that while consumers often headed in store for one particular product, they tended to expand their baskets over time.

“They might come in for meat, and it might take them a month, or two months, but they start exploring different parts of the range.”

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