Independent supermarket owners in Tasmania are raising serious concerns about proposals to use taxpayer money to entice German discount retailer Aldi to the island. They argue that long-standing local businesses already provide meaningful competition to the major supermarket chains.
The debate has emerged following a recent $30 million plan from the Greens, which includes $28 million in direct support to attract new supermarket entrants like Aldi, and a $2 million review into supermarket competition.
Tasmanian Independent Retailers (TIR), the group behind 86 IGA stores statewide, says the proposal ignores the efforts and contributions of existing retailers who’ve been serving local communities for generations.
“IGA stores in Tasmania already go head-to-head with the big players,” said Drew Freeman, CEO of TIR. “We’re proud to offer not just competitive prices and real choice, but a level of personal service that large chains simply don’t match.”
TIR is now urging the government to focus on strengthening the businesses already operating across Tasmania, rather than directing millions towards luring a foreign competitor.
IGA stores, the group notes, employ more than 2,500 Tasmanians and are deeply rooted in the community – from supporting local farmers and producers to sponsoring grassroots sport and charitable initiatives.
Freeman warned that subsidising a multinational entrant could do more harm than good, especially in rural and regional areas where IGA supermarkets are often the only full-service option.
“Bringing Aldi to Tasmania might sound like a quick win,” he said, “but it risks wiping out the very businesses that have kept these communities going for decades. That’s not boosting competition – that’s replacing it.”
Instead of funnelling money towards a newcomer, TIR is calling on governments to help existing businesses by tackling rising operating costs such as freight, energy, insurance, and complex regulations.
Meanwhile, independent Senator for Tasmania, Tammy Tyrrell, has been actively campaigning for Aldi to establish itself in the state, pointing to data showing that grocery prices often fall in regional towns when Aldi sets up shop.
“Tasmanians are being hit hard at the checkout,” she said. “Reports keep telling us that competition from Aldi brings prices down – and we’ve been left behind.”
Despite the pressure, Aldi’s top executive Anna McGrath told a federal inquiry last year that there are no immediate plans to expand into Tasmania, citing logistical hurdles.
“Distance and supply chain complexity make Tasmania – like far north Queensland – a more challenging proposition,” McGrath explained. “That doesn’t mean we won’t keep reviewing our future opportunities, but for now there’s no plan.”
As the conversation continues, the heart of the issue remains clear: whether it’s better to invest in strengthening local businesses that have stood the test of time, or to back a new entrant in hopes of shaking up the market.
For the latest retailer news and information, check out the IndiHub website or to speak to us about how we can help your business contact us.
