Discount supermarket chain Aldi plans to open a store in Kwinana as part of a $500 million expansion that is set to shake up the Coles-Woolworths duopoly.
Aldi has remained tight-lipped about locations for its planned 60 stores but the first documents have emerged detailing a 1475sqm shop at newly refurbished Kwinana Marketplace.
A signage application lodged with the City of Kwinana revealed the German retailer's plans to move into a space vacated by Coles and approved for use as an IGA supermarket.
Kwinana Marketplace, formerly the Kwinana Hub on Chisham Avenue, has recently undergone a multimillion-dollar upgrade spearheaded by Woolworths.
With the site already approved for shop use, Aldi will be able to swoop in without any further planning approval from council.
Australian Competition and Consumer Commission chairman Rod Sims said the introduction of Aldi would be good for the Perth supermarket sector.
"As we have seen in the Eastern States, when Aldi enters the market competition increases and prices at nearby Coles and Woolworths drop, ultimately benefitting the consumer," he said.
A Chamber of Commerce and Industry WA spokesman said it was no coincidence that the European retailer decided to invest after trading restrictions were relaxed in WA and welcomed the employment opportunities created by the move.
Wesfarmers chief Richard Goyder has claimed international companies like Aldi posed a bigger threat to Australian retailing than homegrown supermarket chains, questioning their home-branded product and level of community contribution.
Kwinana mayor Carol Adams said Aldi's decision was a big tick of confidence and a reflection of the huge investment made by the council and its partners in the city centre.
"The introduction of Aldi will be a huge benefit for Kwinana as this is a store that will attract shoppers from across Perth, keen to enjoy this type of retail experience already available to people in the Eastern States," she said.
Aldi has applied to the council for approval for six signs around their site, all of which exceed the 1.5sqm maximum size limit.
Aldi has 13.5ha at Jandakot airport for its distribution centre that is due to be built by 2016.