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Reuters reports that "fresh fruit and vegetables are the new frontline in Aldi Inc's assault on Australia's $70 billion supermarket sector, as the German discounter looks to beat the most profitable duopoly in global groceries at their own game.

"For the first time, Aldi's Australian arm plans to ship fruit and vegetables direct from farms in Australia to its stores, according to one major fruit supplier, removing the only competitive advantage for incumbent heavyweights Woolworths Ltd and Wesfarmers-owned Coles ... This would hit Woolworths and Coles where it hurts. For decades, the duo have fought over who offers the freshest fruit and vegetables, while Aldi's main weakness since it entered Australia 14 years ago has been its lack of a competitive fresh-food alternative."

Indeed, "the strain - from the foreign competition but mainly from Australia's sluggish economy - is starting to show on the two market leaders, which for half a century have banked more than 70 cents of every supermarket dollar spent in the country. Australia's No.1 grocer Woolworths on Wednesday warned of its first profit decline in two decades and announced the shock resignation of its CEO, as it cut hundreds of jobs as part of an restructure unveiled last month."
KC's View:
I would expect that we're going to see a lot more of this in the US as well, especially with Lidl coming to our shores.