DOC 01
ALDI FOODS PTY LIMITED applicant for the conditional grant of a liquor store licence
ALDI WHITFORD CITY Westfield Whitford City Shopping Centre Marmion Avenue, Hillarys
PUBLIC INTEREST ASSESSMENT
Prepared by Lavan on behalf of ALDI Foods Pty Limited Ref: Jessica Patterson [email protected] T: (08) 9288 6946 www.lavan.com.au © Lavan 2019
Public Interest Assessment ALDI Whitford City
Table of Contents
1 Introduction 2 2 Overview of proposal 3 Consultation 7 Community demand 8 3 Applicant’s details and background 9 ALDI supermarkets 16 ALDI pricing and promotion 18 4 ALDI liquor model 20 The premises 22 Stock range 24 ALDI Exclusive Products 25 Low risk features of the proposal 28 5 Locality 29 Nature and character of local community 31 Westfield Whitford City Shopping Centre 33 6 Section 5 38 7 Harm or ill-health – section 38(4)(a) 39 At risk groups and sub-communities 39 Social health indicators 42 Minimising harm and ill-health 45 8 Impact on amenity, quiet or good order – section 38(4)(b) 53 Outlet density 53 9 Offence, annoyance, disturbance or inconvenience – section 38(4)(c) 63 10 Tourism, community or cultural matters – section 38(4)(ca) 65 11 Other matters 67 Patronage 67 Security and crime prevention 67 12 Conclusion 70
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1 Introduction
1.1 ALDI Foods Pty Limited (ACN 086 210 139) seeks the conditional grant of a liquor store licence to operate from a small space within the new ALDI supermarket that will be constructed at Westfield Whitford City Shopping Centre, Marmion Avenue, Hillarys. If granted, the licence will trade as ALDI Whitford City.
1.2 This detailed Public Interest Assessment (PIA) supports the application and addresses all relevant aspects of the public interest in accordance with both the Liquor Control Act 1988 (WA) (Act) and the licensing authority’s Public Interest Assessment policy1 (PIA Policy).
1.3 Pursuant to the PIA Policy, the standard Locality for Hillarys is a 3km radius area surrounding the proposed site (Locality).
1.4 This PIA is part of the Applicant’s Case and should be read in conjunction with the other parts, all of which are itemised in the document titled Index of Material Before the Director and Applicant’s Case (Index). Where this PIA cites particular documents with “DOC” followed by a number (eg “(DOC 1)”), it references material in the Applicant’s Case by way of its listing in the tables contained within the Index.2
1.5 In particular, referred to throughout this PIA are two detailed reports prepared by experts that the applicant engaged in respect of this application (DOCS 8 and 9).
1.5.1 Patterson Research Group3 (PRG) surveyed people living in the Locality to assess their attitudes toward the ALDI liquor proposal. This research was done in June 2019 through a series of expertly prepared questions that were put to a representative sample of residents.
1.5.2 Deep End Services4 (DES) has provided expert in-depth analysis of the Locality, including a detailed analysis of demographics, planning policies and strategies, trade catchment and density of licensed premises.
1.6 The findings in the reports prepared by these two experts supplement the applicant’s own research and submissions in this PIA. Collectively, the documents provide a significant volume of evidence to support the Applicant’s Case for the grant of the ALDI Whitford City licence.
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1 https://www.dlgsc.wa.gov.au/department/publications/publication/public-interest-assessment-policy. Last amended 3 October 2018
2 Supporting material referred to in this document not produced by or for the applicant has been obtained from public sources under licence. Where relevant, personal information within the supporting material has been redacted for privacy reasons. Full copies of some of the source material accompany this PIA and are listed in the Index. Other material not so listed in the Index can be made available in full if required and has only been left out of the Index to lessen the burden of paper on the licensing authority.
3 https://www.marketresearch.com.au/about_us/overview.phtml
4 http://deependservices.com.au/index.php/about-us/
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2 Overview of proposal
2.1 This application is made by a highly sophisticated and experienced packaged liquor operator, which enjoys extensive supermarket and liquor retailing experience within Western Australia, elsewhere here in Australia and overseas.
2.2 ALDI has been operating in Australia since 2001 when the first ALDI store opened in Sydney. There are now over 580 stores throughout Australia, including approximately 520 stores in the eastern states. Around 330 of those stores in the eastern states include a liquor component.
2.3 The company is in the midst of a $700 million expansion into other states in Australia, with approximately 70 stores to open in Western Australia and up to 50 stores in South Australia in total.
2.4 ALDI opened its first four supermarkets in Western Australia on 8 June 2016. By the end of 2016, ALDI had opened 19 stores in total and served approximately 3.2 million WA shoppers.5 There are currently 43 supermarkets operating throughout this State, with several more expected to open this year.
2.5 ALDI is one of the largest and most popular retailers in the world. Some customers are such passionate and dedicated fans of ALDI’s wide range of household and consumable products that they have developed their own name, “ALDIholics”. There is a customer-driven Facebook page named, ALDIholics, with its own logo depicted to the right,6 devoted to information for ALDI lovers.
2.6 Further in terms of social media, ALDI boasts strong following and popularity, as shown in the screenshots below.7 These mediums are the modern day voice of the public and significant representations of community sentiment.
5 http://www.perthnow.com.au/news/western-australia/aldi-to-open-14-more-stores-in-wa-in-2017/news- story/0de29965fcd9712852ab9b2919908286
6 https://www.facebook.com/ALDIholics/
7 https://www.facebook.com/ALDI.Australia/ and https://www.facebook.com/ALDI.Australia/app/116943498446376/
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2.7 The emergence of the ALDI retailing concept into Western Australia, following the company’s significant popularity in the eastern states, has been and continues to be exciting and highly anticipated from the general public’s perspective.
2.8 The proposal is for a small liquor display/browse section of only approximately 30m2 within the ALDI Whitford City supermarket. A carefully selected and exclusive range of unrefrigerated liquor is proposed to be available in a discrete and clearly designated licensed area within the supermarket.
2.9 This liquor model is entirely unique to ALDI. Its various features referred to throughout this PIA, make for a bespoke manner of trade. The boutique type of liquor service is designed specifically to complement and accompany the diverse and attractive ALDI supermarket services and facilities. This creates a true one-stop- shopping8 convenience for customers, which is a key feature of the ALDI offering.
2.10 The ALDI liquor service was first made available in WA at the end of August 2017 in five of its supermarkets. A total of 35 ALDI supermarkets have been approved to sell liquor in WA, 26 of which are currently operating with the liquor service.
8 This is addressed in detail in the applicant’s accompanying Legal Submissions (DOC 7).
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2.11 The ALDI liquor offering is described as follows by ALDI Australia’s Wine and Sparkling Buyer, Mr Jason Bowyer:9
Like our grocery offer, ALDI’s liquor range is focused, ensuring that we offer great value and exceptional quality. Since establishing in WA more than a year ago, customers have spoken loudly about their desire for us to bring our popular liquor offering to the West.
ALDI partners with a number of high calibre international and Australian wine suppliers, who each share our passion for quality. We have built strong relationships with these suppliers, who are committed to ensuring that our wine products offer great value at their respective price points.
2.12 In recognition of the launch of the ALDI liquor service in WA, renowned wine expert Ray Jordan was invited to sample six of the wines in ALDI’s WA stores. Mr Jordan remarked that one of the wines in particular, being a $7 bottle of One Road South Australian Heathcoate Shiraz 2015 (pictured to the right), was “damn good”.10 That Shiraz has also won several other awards, including Double Gold & Best Value Shiraz of the Year at the 2017 Melbourne International Wine Competition. This Shiraz is just one example of ALDI’s many high quality, value-for-money, award winning liquor products.
2.13 The debut of the ALDI liquor service in WA was widely embraced by the public. The announcement on the ALDI Australia Facebook page11 (pictured below on the left) received a swarm of favourable reactions. Many of the comments revolved around members of the public wanting the liquor service at their local ALDI supermarkets. Some examples are provided below.12 There is clearly a significant demand for the ALDI liquor service throughout WA. This anticipated demand has since translated into significant patronage and sales at the ALDI liquor stores that have begun trading.
9 https://www.aldi.com.au/fileadmin/fm-dam/Products/Groceries/Liquor/WA_Launch/ALDI_Media_Release_- _WA_Liquor_Launch_1_.pdf
10 http://www.perthnow.com.au/news/western-australia/aldi-will-start-selling-alcohol-in-perth-stores-from-today/news- story/c59014afc215ba475dd1265a0e89eb4c
11 https://www.facebook.com/ALDI.Australia/posts/1716136855110475
12 Personal details have been redacted for privacy reasons. A fully copy of the post can be provided to the licensing authority if required.
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2.14 The layout of the ALDI Whitford City supermarket is pictured below. It shows the proposed liquor display/browse area outlined in the bold red line. This is clearly a tiny proportion of the overall supermarket footprint.
2.15 Pictured below is a 3D aerial image the area proposed to be licensed in respect of the liquor display/browse and checkout area.
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2.16 This display/browse space will take the shape of a square and the displays themselves will form a basic U shape. This design enables convenience and a high level of surveillance of the area. The display/browse area will also comfortably accommodate shoppers with their trolleys for added convenience.
2.17 The checkout closest to the liquor display/browse area is proposed to be licensed for the purposes of the liquor transactions. Staff operating at this checkout will be able to monitor all patron activity in this area.
2.18 The very small size and layout of the liquor display/browse area clearly confirms that the liquor section is a complementary service to the supermarket and will help ensure the area is well-controlled and supervised.
2.19 Additional details of the ALDI liquor offering are provided further on in this PIA.
Consultation
2.20 As part of its thorough preparation of this application, the applicant consulted extensively with relevant authorities and the local community. In doing so, the proposed liquor service has been explained and feedback sought.
2.21 The following consultation has been undertaken:
2.21.1 In 2013 a representative from the applicant company met with officers from the Racing, Gaming & Liquor arm of the Department of Local Government, Sport and Cultural Industries (as it is now known) and notified the Department in July 2015 that applications for liquor store licences would soon be lodged. The applicant has subsequently liaised with the Department in respect of modifications.
2.21.2 Representatives from ALDI and Lavan met with Police officers in the Liquor Enforcement Unit on 31 July 2015.
2.21.3 Representatives from ALDI and Lavan met with the Chief Health Officer on 31 July 2015 and again with representatives from the Chief Health Officer’s office on 12 March 2019.
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2.21.4 An information and promotional flyer was distributed to households within the Locality. A copy of that flyer is included in the Applicant’s Case (Pages 29 and 30 of DOC 8).
2.22 As referred to in the next section and also throughout this PIA, the applicant also consulted extensively with the community through the market survey conducted by PRG. The findings from the survey are contained in the expert’s report (DOC 8) and show overwhelming support for the proposal and demand for the liquor service.
Community demand 2.23 The market research found that an estimated 98% of people it surveyed would at least try the ALDI Whitford City supermarket when it opens.13
2.24 Specifically as to the liquor proposal, the market research reveals demand from the local community for the ALDI liquor service. “[A]lmost nine in ten (88%) respondents who ever buy packaged alcohol indicated that if shopping in an ALDI store which contained a liquor section, they would purchase their take-away liquor requirements in that store. This proportion was heightened to 92% amongst respondents who buy packaged alcohol at least once a month.”14
2.25 The ALDI liquor display/browse area being confined within its supermarket footprint was found to be of at least moderate appeal by 92% of respondents who are packaged liquor buyers.15
2.26 The following extract from the PRG report (DOC 8) also supports the proposition that the ALDI liquor concept certainly has the potential to change and enhance the shopping behaviours of the local community:16
The packaged alcohol purchasing pattern for this locality shows that currently the most common pattern of buying packaged liquor is on a special shopping trip to a “walk in and browse” store. 46% report doing all or most of their packaged liquor purchasing on a special trip to a “walk in and browse” store, compared to 28% who shop for their packaged liquor requirements in connection with their grocery shopping.
The finding that a further 30% report buying their packaged liquor requirements on about half their liquor shopping occasions (creating a net of 58% who report that they do so on at least half their grocery shopping behaviours) suggests an emerging behaviour pattern of purchasing alcohol in conjunction with grocery shopping, though with the potential to expand further. (Emphasis added)
It was not surprising to find that the option of being able to buy their packaged liquor requirements from a liquor section within the grocery store would be seen as more convenient.
13 PRG report (DOC 8) at page 5
14 PRG report (DOC 8) at page 5
15 PRG report (DOC 8) at page 16
16 PRG report (DOC 8) at page 5
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2.27 The local community members are entitled to enjoy the full range of ALDI’s offering, including its liquor service. The ALDI retailing concept is enormously popular with shoppers all around Australia and in other countries.
2.28 Further in terms of ALDI’s popularity within the general community, in response to the initial refusal of the ALDI Harrisdale liquor store licence application at first instance in June 2016, a massive 8,637 people took it upon themselves to participate in an Internet survey conducted by Nine News Perth which asked: “Do you think ALDI should be banned from selling alcohol because it’s too cheap?” Within just two days 86% of those who participated answered “no”. This represents a staggering 7,428 people. A print out of the survey results and the thousands of personal comments in support of ALDI in Western Australia is included in the Applicant’s Case (DOC 17). Relevantly, the survey was conducted without any involvement from the applicant. It was totally unsolicited.
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3 Applicant’s details and background
3.1 ALDI now operates more than 10,000 stores across 18 countries. The company has become a world-leading supermarket operator since it was founded in 1913 in Germany as a family business. The following provides some detail about the history of the organisation.17
The first foundation stone was laid in 1913 with the opening of a small food store in the German town of Essen. It didn't take long for this little 'service store' to become a popular place to shop.
During the '40s, an expansion program was created and more ALDI stores were opened. In 1954, a celebration was held for the opening of the 50th store in Germany.
By 1960 ALDI had grown to a network of over 300 stores between the Ruhr Valley and Aachen. The prosperous family business was then divided into two independent companies: ALDI Süd - to service the South, and ALDI Nord - for the North.
'Self-service' was still a relatively new retail structure in the '60s and ALDI became the first company in Germany to adopt this new retail concept. While customers were still able to take advantage of the same high quality products as before, they could now purchase them at much more competitive prices.
In 1983, ALDI Süd started chilled distribution depots and sold fresh products such as cheese, yoghurt and sausages. Frozen products came in 1998 and were closely followed by fresh meat. ALDI, to this day, continues to keep up with the ever-evolving taste of the modern consumer.
3.2 ALDI’s published mission is to provide the public with “incredibly high quality at impossibly low prices.”18 This is achieved through a highly sophisticated business model involving a very focused selection of products and advanced levels of
17 https://corporate.aldi.com.au/en/about-aldi/aldi-history/
18 https://www.aldi.com.au/en/about-aldi/customer-information/
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systemisation and organisation designed for optimum efficiency and product control. ALDI is dedicated to maintaining consistency in its philosophy of incredibly high quality at impossibly low prices.
3.3 ALDI is a responsible and sophisticated corporate citizen and operates pursuant to very high standards and key performance indicators, which include the following published principles:19
ALDI works to ensure customers quality products at the best price. Our responsibility to customers is intrinsically linked to the health and nutrition of all our products, and we are constantly reviewing our range to improve its nutritional content.
We have a number of initiatives that go above and beyond mandated legal requirements. These include:
• Providing clear product information, including easy to read nutritional and allergen labelling
• Maximising the positive nutritional benefits of our products through dialogue with independent bodies
• Minimising any potential harmful impacts of our products
• Meeting or exceeding nationally recognized standards for health and safety
3.4 Included in the Applicant’s Case is a copy of the ALDI Corporate Responsibility Policy (DOC 11) and other ALDI published policies in respect of consumers, resources, suppliers, operations and community (DOC 12). These policies, together with other information in this PIA, collectively illustrate the applicant’s very high standards and superior level of corporate responsibility.
3.5 ALDI has published the following statements in its Smarter Shopping brochure (DOC 16):
We are exacting in our pursuit of quality and work closely with all our suppliers to deliver products that meet stringent international standards for quality, nutrition and taste. Every single product that appears on ALDI’s shelves has been sampled, tested and signed off by senior management before it is added to our range.
Once it is in our stores, the rigour does not stop there. Each and every product that appears on our shelves is tested a number of times throughout the year to ensure it still meets the strict specifications we set at the very beginning.
3.6 ALDI’s corporate responsibility principles also apply to its partners and suppliers. For example:
3.6.1 ALDI encouraged Australian suppliers to support and work with a range of international ethical sourcing groups. The following was reported in September 2017:20
19 https://corporate.aldi.com.au/en/corporate-responsibility/consumers/
20 http://www.ausfoodnews.com.au/2017/09/11/aldi-tightens-supplier-corporate-social-responsibility-standards.html
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Aldi has asked Australian suppliers to sign up to a range of international ethical sourcing groups and start auditing their own supply chain and manufacturing systems.
…an Aldi spokesperson said Aldi’s corporate responsibility principles guide Aldi through its day-to-day actions and it is important it partners closely with its suppliers to achieve high standards.
“In addition to requiring high social standards throughout the supply chain, we also aim to: source raw materials responsibly, lessen our impact on the environment, support Australian businesses and give back to the communities we operate in, and help make healthy choices affordable for our customers,” Aldi’s spokesperson said.
3.6.2 ALDI announced in October 2017 that it will help support the delivery of the New South Wales Government’s sustainability initiative, dubbed Return and Earn Container Deposit Scheme. The initiative aims to halve the number of bottles and cans thrown away in parks, beaches and waterways. In a statement, ALDI said it was “committed” to supporting and “participating in the largest litter reduction initiative in NSW.”21
3.6.3 Most recently, ALDI announced its goal to “reduce the amount of plastic packaging by 25 per cent by 2025 through a number of steps, including replacing the packaging of fresh produce to more sustainable alternatives and phasing out unnecessary single-use plastics by the end of next year”22. The company will work with its business partners to identify ways and innovate solutions to reduce their reliance on plastics.
3.7 ALDI operates pursuant to a highly-evolved corporate structure (DOC 10) and very sophisticated hierarchy whereby staff at each level are entrusted with a high degree of responsibility and are provided with extensive and comprehensive training and support.
3.8 ALDI’s pursuit of excellence and quality in all things is evident in the many accolades it has won in Australia. The following paragraphs describe some of its awards just within the past couple of years.
3.8.1 ALDI was named the 2016 Retailer of the Year by the Australian Retail Association.23 In awarding ALDI this prestigious title, the Australian Retail Association noted that a key factor behind the organisation being selected was its strong track record for creating innovative staff programs, investing heavily in its staff with above-industry standard pay and staff development opportunities. ALDI won the award “in recognition of its growth, influence and market leading policies, which have seen the supermarket chain
21 https://www.insideretail.com.au/blog/2017/10/10/woolworths-and-aldi-sign-up-to-can-scheme/
22 https://www.heraldsun.com.au/business/companies/aldi-announces-plastic-bag-ban-support-will-phase-out-singleuse- plastic-by-2020/news-story/0737f2d3da9e6547efee0a28eda09803
23 http://www.smartcompany.com.au/industries/retail/73746-aldi-crowned-australias-retailer-year-embarks-major-expansion- 100-new-stores/
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significantly challenge the majors in its category and beyond with the implementation of innovative sales approaches.”24
3.8.2 ALDI was also nominated Roy Morgan Research Supermarket of the Year 2016. This is the fourth time since the customer satisfaction-based awards were first established in 2011 that ALDI has claimed this title.25
3.8.3 ALDI won several awards in BrandSpark International’s 2017 Best New Products Awards, “taking out the top prize in 16 different categories, including household cleaning, skin-care and fabric softener.”26
3.9 ALDI’s momentum in achievements has not stopped. Just last year alone the company was recognised for its popularity and success in the market place:
3.9.1 In July 2018 it was announced that ALDI was voted as “the most trusted brand” in Australia in a Roy Morgan Research survey.27 It was reported that the success of this global retailer in the Australian market “has been built not only on discount prices but also a reputation for reliability and meeting the needs of consumers.” Roy Morgan Research highlighted that important drivers of trust “include reliability, customer focus, knowledgeable staff, ease of contact and previous good experiences with the company, in addition to other key performance indicators.” This latest accolade of ALDI’s is a testament to its high level of corporate social responsibility and dedication to its customers.
3.9.2 ALDI recently rated at the top of Canstar Blue’s 2019 customer satisfaction ratings for supermarkets, again.28
24 https://www.retail.org.au/mediacentre/australias-top-retailers-crowned-at-2016-eftpos-ara-australian-retail-awards/
25 https://www.aldi.com.au/en/groceries/awards/roy-morgan-supermarket-of-the-year-2016/. Roy Morgan Research is Australia’s best known and longest established market research company, https://www.roymorgan.com/about
26 http://www.ausfoodnews.com.au/2017/02/20/products-of-the-year-awards-for-2017-announced.html
27 https://www.roymorgan.com/findings/7653-aldi-most-trusted-brand-in-australia-201807060755
28 https://www.canstarblue.com.au/stores-services/supermarkets/. Canstar is Australia and New Zealand’s premier research and expert ratings agency: http://www.canstarblue.com.au/about-canstar-blue/
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3.9.3 In October 2018, ALDI was crowned 2018 Retail Employer of the Year at the Australian Retailers Association awards. “To be in the running, [ALDI] had to demonstrate a strong track record across a range of areas, including staff education, training and development, internal communication, community support programs and Corporate Social Responsibility”.29 The Association remarked that “ALDI have proven to be “fierce contenders” with a strong commitment to diversity, non-discrimination and support to all
29 https://www.aldiunpacked.com.au/Article/October-2018/ALDI-crowned-Retail-Employer-of-the-Year
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employees.”30 The Association even considered ALDI to be “pioneers in the retail sector”.31
3.10 More specifically, ALDI is also an award-winning retail liquor supplier. ALDI was named Liquor Store of the Year 2017 at the Roy Morgan Research Customer Satisfaction Awards.32
3.11 These awards by Roy Morgan Research recognise companies across a range of industries that go the extra mile to please its clients and customers. These awards are “the benchmark by which customer satisfaction is measured in Australia, New Zealand and Indonesia. Reliable, accurate and totally objective, the Australian awards reflect the experiences of some 50,000 consumers, as aggregated in [Roy Morgan’s] Single Source survey over 12 months.”33 There can be no question as to the credibility of these awards and certainly no doubt that ALDI customers are immensely satisfied with the liquor service ALDI provides.
3.12 Jason Bowyer gave the following remarks on this achievement of ALDI’s:34
At ALDI Australia, we are delighted to win the Roy Morgan Customer Satisfaction Award for Liquor Store of the Year 2017. We believe that all our products, from our award- winning $19.99 Monsigny Brut Champagne to our red and white wines, deliver exceptional value, quality and consistency. It’s great to see our customers across Australia agree.
Our success is based on the close relationships we have with our suppliers, who all share our passion for awesome quality. Aldi partners with some of the best producers and winemakers both in Australia and internationally, which means we can deliver exceptional quality, value and consistency to our customers. Our partnerships with our suppliers are focused on a desire to see the customer win with great-tasting wines at unbeatable prices.
3.13 The title of Liquor Store of the Year 2017 follows many individual product awards that ALDI has received locally and internationally over the years. “It recognises the
30 https://insidefmcg.com.au/2018/10/19/aldi-awarded-ara-employer-of-the-year/
31 https://insidefmcg.com.au/2018/10/19/aldi-awarded-ara-employer-of-the-year/
32 https://www.aldi.com.au/en/groceries/awards/roy-morgan-liquor-store-of-the-year-2017/
33 http://www.roymorgan.com/findings/7505-roy-morgan-announces-winners-of-the-2017-customer-satisfaction-awards- 201802201125
34 https://www.theshout.com.au/news/aldi-wins-roy-morgan-liquor-store-year/
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unique value ALDI can offer [its] customers with [its] tightly focused range, unwavering passion for quality and longstanding relationships with local and international suppliers.”35
3.14 ALDI certainly enjoys many accolades for its exclusive product range (DOC 14). The following are but a few examples of ALDI’s acclaimed liquor products and awards won over the past several years:
3.14.1 In 2014: “The Sydney International Wine Competition found a $6.99 Cabernet Sauvignon from South East Australia and a $9.99 Semillon, blended specifically for the Aldi discount supermarket chain, to be in its top 100. And Aldi’s $4.99 Spanish Tempranillo snagged a Blue Gold award — the equivalent of a silver medal.”36
3.14.2 In 2015: “The Sydney International Wine Competition has deemed Aldi’s discounted wine offerings among the best of the best”.37
3.14.3 In 2016: ALDI’s Prosecco “was voted as the ‘Best Value Buy’ in Winestates Annual Edition 2016” and “based on the frequency by which it was out of stock during the summer months, has been a strong performing item for Aldi”.38
3.14.4 In May 2017: “The $8 Aldi Côtes de Provence Rosé has taken out an amazing silver medal at the International Wine Challenge – an event dubbed ‘The Oscars of the wine Industry’, according to The Sun UK. The award-winning drop was competing against bottles three times its price, even beating a vintage version of the drop, which retails for over $30”39.
3.14.5 In June 2017: ALDI’s Highland Black Eight-Year-Old Scotch Whiskey received a Double Gold prize in the Melbourne International Spirits Competition. This product “beat some rivals valued three times more in price”.40
3.14.6 In July 2017: ALDI’s Oliver Cromwell London Dry Gin won a gold medal at the International Spirits and Wine Competition and was named one of the best gins in the world.
35 https://www.aldiunpacked.com.au/Article/May-2018/Lifting-the-lid-on-ALDI’s-liquor-story
36 http://www.news.com.au/lifestyle/food/drink/six-of-aldis-cheap-wines-judged-among-best-at-sydney-international-wine- competition/news-story/eb163e6f8d5e9b85a5522a8d1b622d50
37 Australian National Retailer, February 2015 at page 16: http://en.calameo.com/read/0003734959f4c8982c4bc
38 ALSA – IRI State of the Industry Report, March 2017 (DOC 22) at page 62
39 http://www.elle.com.au/culture/aldi-rose-is-one-of-the-best-wines-in-the-world-13255 and http://fortune.com/2017/05/30/best-rose-wine-challenge-aldi/
40 http://www.news.com.au/lifestyle/food/drink/35-aldi-whisky-takes-out-top-prize-for-being-a-phenomenal-drop/news- story/14ca83dce732c7f46232a283eff29110
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3.14.7 In August and November 2017: ALDI’s $6.99 bottle of One Road South Australian Heathcoate Shiraz 2015 won the Double Gold award at the 2017 Melbourne International Wine Competition and the Gold medal at the Great Australian Shiraz Challenge.
3.14.8 In October 2018: ALDI’s Blackstone Paddock Limited Release Chardonnay 2017 took home two awards at the 2018 Wine Show of Western Australia.41 This wine retails for just $14.99 and is exclusive to ALDI. Even at its price point, this Chardonnay “beat a hot field of WA chardonnays that included other more famous gold medal winners such as Vasse Felix Heytesbury, Flametree SRS Wallcliffe, Xanadu Stevens Road and Deep Woods Estate SV in winning the best chardonnay and best white wine of the show.”42
3.15 The various accolades described above, which are only a few examples, “[paint] Aldi in a positive light and [they reinforce] the fact they’re offering quality products at a value price.”43
3.16 ALDI has clearly enjoyed great success across various aspects of its organisation, including liquor. In another online article published this year44, Jason Bowyer briefly explains some of the company’s strategies and its plains to maintain its success in the year ahead:
“Quality and value have always been the main focus for us. When you are focused on the customer, it’s easier to produce wines they will like and will also perform strongly in the show circuit. Everything we do is designed with one purpose in mind: to provide the highest quality products at the best possible prices.
…
“We constantly look for innovation, studying consumer trends and looking domestically and abroad for new varietals and styles. Rosé is certainly the hot topic at the moment and we will be focusing on this category, bringing a range of styles and regions to our customers. Early in 2019 we will launch a Soave (a dry Italian white wine) under our Corte Carista brand.”
As well as Rosé, Aldi is looking to focus on the growing popularity of sparkling wine which Bowyer believes is driven by customers’ desire for “aspirational products” and “affordable luxury”. He sees these approaches as “undeniably different” and knows that looking ahead, he relishes the challenge of taking things another step further.
ALDI supermarkets 3.17 ALDI supermarkets generally comprise a total footprint of around 2,000m2. Some are located in shopping centres (such as at Whitford City), while others are free-standing.
41 https://insidefmcg.com.au/2018/10/10/aldis-15-chardonnay-bags-wa-wine-award/
42 https://thewest.com.au/lifestyle/drink/aldi-chardonnay-is-best-white-wine-in-state-ng-b88983629z
43 http://www.smartcompany.com.au/industries/retail/aldi-wins-two-awards-alcohol-whats-unassuming-underdog-right/
44 https://www.theshout.com.au/national-liquor-news/aldi-puts-trust-in-affordable-luxury/
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3.18 Consistent with other ALDI stores, the Whitford City store will comprise the following different parts or areas, listed in order of size in terms of the approximate portion of the total area:
3.18.1 Main public retail area (non liquor) – grocery and other supermarket items.
3.18.2 Storage.
3.18.3 Loading dock/delivery area.
3.18.4 Entrance and trolley bay.
3.18.5 Checkout.
3.18.6 Office and staff facilities.
3.18.7 Liquor display and browse area (proposed).
3.19 ALDI stores are bright and pleasant shopping environments. The following images depict the stylish and clean appearance that will be found at the ALDI Whitford City store:
3.20 ALDI operates a generic store modelling concept. The size, layout, colour, product location and stock range of each ALDI store are almost always the same. Minor differences may occur from time to time at some stores owing to land formation, town planning requirements or other unique particulars of the site. For example, the entrance door may be positioned a few metres away from its usual position to suit a particular location.
3.21 The standardisation of store layouts engenders familiarity for customers, enhances shopping comfort, efficiency and convenience. It also enables customers to rely on consistency of style, standard and overall offer. Importantly, these are key features of the applicant’s successful superior efficiency model of operation which benefits customers enormously and is clearly popular with shoppers.
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3.22 ALDI supermarkets contain only around 1,350 core product lines. There are limited brand options within each different product line. For example, ALDI may offer only two or three different brands of plain flour, rather than five or more as is commonly stocked at most supermarkets. This enables ALDI to operate from a smaller and more user-friendly footprint and with a more exclusive and carefully selected range.
3.23 Many of ALDI’s products are exclusive versions of mainstream big-brand name items which are manufactured according to ALDI’s strict specifications to ensure quality and value for money. Expressi Coffee is one of the most popular examples. The Expressi Coffee capsule machine and coffee capsules were category winners in the 2017 Product of the Year awards.45 ALDI’s Smarter Shopping corporate brochure (DOC 16) provides further details of ALDI’s exclusive products.
3.24 ALDI’s liquor range also includes exclusive products that can only be purchased in its stores. The ALDI liquor offer is explained in further detail later in this PIA.
3.25 “The majority of ALDI’s exclusive brands are sourced from Australian suppliers and we only source products from overseas when we can’t find the product, quality, efficiency or innovation we seek, here in Australia.”46
3.26 63% of ALDI shoppers surveyed in the eastern states have said that they buy more of the ALDI exclusive products than well-known branded products.47
3.27 ALDI supermarkets offer a wide range of quality products including fresh food, packaged food, other consumables and various household and personal items. In addition, every Wednesday and Saturday “special buys” are promoted by ALDI which are specialty short-term product lines that are usually non grocery items. Flat screen televisions, furniture, clothing, appliances, BBQs, tools, gardening equipment, vacuums and toys are just some examples. These have proven extremely popular in the eastern states. Some are repeated occasionally, such as ALDI’s now well-known annual line of ski gear popular in the eastern states which customers queue for each year.48
3.28 Included in the Applicant’s Case are copies of pages from various “special buys” catalogues, by way of examples (DOC 20). A very large and diverse range of products can be seen to be on offer, including the popular clothing line by Colette Dinnigan, Dyson vacuum cleaners and a six burner BBQ.
ALDI pricing and promotion 3.29 ALDI prides itself on consistently competitive pricing across all of its product lines and providing customers with exceptional value for money. The company’s ability to
45 http://www.ausfoodnews.com.au/2017/02/20/products-of-the-year-awards-for-2017-announced.html
46 https://www.aldi.com.au/en/about-aldi/australian-made/
47 http://www.roymorgan.com.au/findings/6242-home-brand-products-have-way-to-go-with-grocery-buyers-201505202311
48 http://www.weekendnotes.com/aldi-snow-gear-sale/
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achieve such low prices for quality products stems from its highly sophisticated business model which focuses on operational efficiency. With reference to a 2015 online article, the following are but a few examples of aspects of ALDI’s in-store operations which heighten productivity and reduce waste:49
3.29.1 “One of the most visible examples is trolleys. To get one you must insert a gold coin, which is refunded when you return it. That way Aldi doesn’t have to pay anyone to hang out in carparks retrieving scattered trolleys.”
3.29.2 Products in ALDI stores are displayed on re-usable crates, designed specifically for ALDI. The crates fit systematically in the ALDI warehouse, delivery trucks and supermarkets. For example, ALDI’s multi purpose beverage trays “can go from the factory to the truck to the supermarket floor without being unpacked. It can store 1.25L bottles or 2L bottles. You spend less on shelf stackers if you don’t need to stack shelves.”
3.29.3 ALDI’s products “have multiple barcodes or enormous barcodes…so the checkout person needn’t fumble and fuss to scan them.”
3.30 ALDI’s shelving, storage methods, displays, product placement and other logistical aspects are designed to coordinate with each other to achieve optimum operational efficiencies for stocking products and store management. ALDI’s business is highly systemised and disciplined. As a result ALDI is able to reduce operating costs and provide better services and facilities for its customers.
3.31 ALDI does not operate by the regular retailing method of rotating discounts each day or week. Rather, prices are maintained at a consistently low level. This means that customers know what to expect when shopping at an ALDI store. It also reduces costs and resources associated with the logistics of managing specials which involves external promotion, advertising on site, changing ticket prices, reconfiguring product placement, adjusting till systems and other processes. ALDI does not incur all of these costs, thereby enhancing its operating efficiency.
3.32 Consistent pricing is also indicative of consistent quality. ALDI does not downgrade its products through heavy discounting. In this regard in terms of liquor especially, ALDI’s products very much represent value-for-money. High quality award winning liquor items are provided at prices accessible to most people. The applicant is driven by quality.
3.33 ALDI’s policies and practices clearly achieve the goal of managing costs for the benefit of customers, whilst maintaining quality. ALDI was one of the two best performers in 2017 for gaining share in the total grocery market, up 0.8% points to 12.1%.50 Indeed “[ALDI’s] influence is growing”51 over the consumer market with its expansion in Australia.
49 http://thenewdaily.com.au/money/finance-news/2015/05/24/secret-aldis-super-low-prices/
50 http://www.roymorgan.com/findings/7537-woolworths-increases-lead-in-$100b-plus-grocery-war-201803230113
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3.34 The Australian Liquor Stores Association noted in its March 2017 report that Australian “shoppers have migrated towards the value messaging of Aldi”.52
3.35 Canstar Blue also made the following statement about ALDI:53
While ALDI doesn’t have the same number of stores as Coles and Woolworths, it’s fighting back against the duopoly with often lower prices, with its own brands offering real competition against major brands stacked by other supermarkets. ALDI also offers something different with its ‘Special Buyers’, one-off or seasonal products ranging from specialty foods to snow gear to luxury skin cream.
3.36 At the opening of ALDI’s distribution centre in Jandakot in May 2016, former MLA Mr Joe Francis noted that one of the biggest benefits of ALDI was going to come from the downward pressure on prices that would be applied to the major supermarkets.54 His statement has clearly been confirmed by the evidence provided above.
3.37 ALDI’s approach to business is neatly encapsulated in its “Good Different” slogan, which was launched in early 2017. Mr Thomas Daunt, one of the applicant company directors, explained this campaign as follows: 55
ALDI Australia is unapologetically different – and that’s a good thing for shoppers. We are proud of our differences and we stand by them wholeheartedly, as they are what allows us to bring unbeatable value to our customers, maintain strong relationships with our suppliers and support our staff every day.
3.38 In many aspects, ALDI is distinctly different from alternative supermarket concepts. Its range of products and services offer outstanding points of difference that have won high favour with the public. The business model has huge popularity elsewhere in the country and is proving just as popular in this State. ALDI attracts its own loyal and faithful patrons who become regular repeat customers relying on ALDI’s consistency of product, service and value for money.
4 ALDI liquor model
4.1 The ALDI liquor model is designed, in all respects, to complement the supermarket and to provide adult shoppers with the dual benefit of ALDI’s liquor product range and convenience of accessing those products whilst doing other household shopping.
51 http://www.ausfoodnews.com.au/2016/10/05/aldi-supermarket-shoppers-are-the-most-satisfied.html
52 ALSA – IRI State of the Industry Report, March 2017 (DOC 22) at page 14
53 https://www.canstarblue.com.au/stores-services/supermarkets/
54 http://www.watoday.com.au/wa-news/supermarket-giant-aldi-opens-60m-distribution-centre-in-jandakot-20160518- goxuro.html
55 https://insidefmcg.com.au/2017/05/15/aldis-good-different-campaign/
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4.2 The ALDI liquor section proposed at Whitford City has been designed based on the eastern states model originally, which has been replicated in WA and proven to operate extremely successfully. The 35m2 display/browse and checkout area is a very modest liquor outlet by usual industry standards, but highly valuable to customers. The particular liquor stock range itself and also as combined with the supermarket offer, represents a significant evolution in liquor retailing in Western Australia.
4.3 This liquor model has been developed based on the ALDI’s many years of extensive supermarket and packaged liquor retailing experience in Australia and overseas. ALDI has been operating liquor services within supermarkets in Australia for more than 15 years. The model has been extensively tried and tested in New South Wales, Victoria and the Australian Capital Territory. In each jurisdiction it has proven to be very successful and low risk. The ALDI business model and liquor area design and layout operate with great success, are very popular with the public and have not caused any undue issues with local governments, police or health authorities at over 300 locations in Australia.
4.4 The unique proposal, unrivalled in this State and having attracted considerable custom in other locations, will provide the local community with something capable of catering superbly for the diversity of modern consumer requirements.
4.5 The Whitford City liquor service will operate during the same hours as the supermarket, subject to permitted trading hours under the Act,56 which the applicant seeks approval for. If the supermarket were to operate outside of the approved licensed trading hours, the liquor display/browse area would be clearly closed off to customers.
4.6 There are many aspects to the ALDI liquor model which differ from virtually all other packaged liquor outlets. The following key unique aspects of this model, which will apply at Whitford City should the application be approved, are highlighted:
4.6.1 Combination of the ALDI Whitford City liquor service with the ALDI supermarket. A one-stop-ALDI shopping convenience.
4.6.2 One transaction convenience.
4.6.3 ALDI exclusive product range.
4.6.4 Its small size and location within the supermarket.
4.6.5 Absence of refrigeration.
4.6.6 Absence of external presence of the liquor section.
4.6.7 The particular level of surveillance of the display/browse area which can be seen and monitored by staff at all times in its entirety.
56 Namely 8am to 10pm Monday to Saturday and 10am to 10pm on Sunday, with variations for ANZAC Day, Good Friday, Christmas Day
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4.6.8 Combined beneficial effects of the features listed above which are supplemented by the overall manner of trade and harm minimisation features identified.
The premises 4.7 The following artist illustrations show the proposed sectioned-off licensed area which is to be established at ALDI Whitford City.
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Liquor browse/display area
4.8 The image on the right is indicative of how the proposed display area will appear from within the approximate 30m2 of shelved space. Uncluttered and uncomplicated, easily accessed, light and bright.
4.9 It is obvious from the above images that the position, layout and small size of the liquor display/browse section enable very clear and uninterrupted visibility of and supervision into this area. This assists with security, surveillance, management and control by staff.
4.10 Thoroughly trained and suitably qualified staff members over the age of 18 will be positioned at the nearby licensed checkout at all times, where they will be able to see directly into the liquor area, unobstructed. Such constant and close surveillance is rarely achievable at most other liquor stores due to their size, location of the aisles and walk-in cool rooms. Further details of the applicant’s well developed risk management measures, which include a heavy emphasis on staff training, are set out elsewhere in this PIA.
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4.11 The liquor area will be entirely confined within the ALDI supermarket and have no access or visibility from outside of the ALDI supermarket. Some signage external to the licensed premises may be displayed which is modest and states simply that there is “liquor available in store”, but such signage will not contain images of liquor products, references to particular liquor products or prices of liquor products. An example of this innocuous kind of external signage that may be displayed is shown to the right.
4.12 There will be no cool room or other refrigeration in the liquor area. All products will be stocked and sold at room temperature. This unique feature further confirms the intention that the liquor service is genuinely designed to complement the supermarket and provide a one-stop-ALDI shop. Importantly also, the absence of refrigerated liquor significantly reduces the risks associated with liquor sold and supplied from the ALDI store. The lack of refrigeration will dissuade customers from buying on impulse with a view to consuming the liquor close by or in some other irresponsible manner.
4.13 In addition to the liquor display/browse area and the adjacent checkout, the supermarket office is also proposed to be licensed solely for the purpose of storing licensing-related documents including the approved plans, harm minimisation policy documents and incident register. The applicant also intends to store liquor in the back-of-house storage area of the ALDI Whitford City supermarket and also at the applicant’s distribution centre situated within the Jandakot Airport commercial precinct. No sale or supply will take place from the storage facilities.
Stock range 4.14 The ALDI range of liquor products comprises a modest selection of wines, beers, spirits, ciders and liqueurs. The in-store range will contain a carefully selected value for money range of approximately 95 items, many of which are award-winning. Included in the Applicant’s Case is ALDI’s core stock range of 2018 as well as its impressive list of awards won in respect of its liquor products (DOC 14).
4.15 The range will vary from time to time as new products become available, in response to customer requirements and when occasional specialty items are offered. Generally, the ALDI liquor service will include the following:
4.15.1 60 different wines – red, white, sparkling and fortified.
4.15.2 16 different beers – full, medium and light strength.
4.15.3 15 different spirits – bourbon, brandy, gin, scotch, vodka and liqueurs.
4.15.4 4 different ciders.
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4.16 ALDI’s award winning and “food-friendly” wines represent excellent value for money for consumers and ensure that “affordable wines can still deliver the goods”.57
4.17 Included in the Applicant’s Case is a copy of pages of an ALDI catalogue showing liquor items (DOC 21). It is a relatively modest, yet stylish and elegant advertisement depicting quality products, including some mainstream items and some products exclusive to ALDI. The advertisement contains product information for each item, clearly demonstrating the quality and value-for-money propositions regarding the ALDI range and the fact the range is indeed carefully selected and responsibly promoted.
4.18 Within the liquor range available in any given week is a selection of new and different liquor items which change from week to week, similar to the “special buys” offer referred to earlier on the PIA. Approximately eight different products per week are made available to customers until the stocks are depleted and then new ones are brought in for customers so the product selection remains fresh and vibrant.
4.19 The applicant’s product range also includes Western Australian produced wines. ALDI has partnered with various wine makers from the Margaret River region to develop a selection of exclusive ALDI Margaret River region products (DOC 15). Those items include the following by way of example:
4.19.1 Miles from Nowhere Margaret River Semillon Sauvignon Blanc 2013
4.19.2 A.C. Byrne & Co Margaret River Chardonnay 2013
4.19.3 Vinatero Margaret River Chardonnay 2012
4.19.4 Blackstone Paddock Premium Margaret River Cabernet Sauvignon 2010
4.19.5 Robert Oatley Margaret River Cabernet Sauvignon 2011
4.19.6 A.C. Byrne & Co Margaret River Shiraz 2012
4.20 ALDI’s liquor range is determined following a rigorous process of elimination trialling and testing of products, then identifying those that offer the very best value for money which necessitates excellent quality. The optimum range is provided to customers. Therefore, a smaller quantity of products is stocked than may be found at most other liquor stores. The ALDI range is much more discerning and refined than most other liquor outlets. This ensures, as referred to previously, value for money and great convenience.
ALDI Exclusive Products 4.21 One of the most unique aspects of the ALDI liquor offering is the fact that it includes an exclusive range of products (DOC 14), made-to-order for ALDI stores that are not available at any other packaged liquor outlet.
57 http://www.foodwinetravel.com.au/wine/wine-features/aldi-wine/
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4.22 The majority of ALDI’s range is unique and exclusive to ALDI. Shoppers simply cannot access those items at any other outlet.
4.23 Many of these ALDI exclusive products have been awarded medals at prestigious competitions where they are judged against much more expensive products. For example, at the 2016 Sydney International Wine Competition, the following three ALDI exclusive products (pictured below) won the competition’s highest award, the coveted Blue-Gold Medal:58
South Point Estate 2015 Rose Tudor Central Victorian 2014 Blackstone Paddock “The Player” ($4.99) Shiraz ($12.99) Barossa 2014 Shiraz ($14.99)
4.24 As a result of ALDI’s success at the event, the founder of the Sydney International Wine Competition, Mr Warren Mason, was full of praise for Jason Bowyer, remarking that he was “…probably better than anyone in terms of thinking of his market, given he’s able to offer wines at $10 a bottle or less” and adding that “he has obviously got his technique and approach right.”59
4.25 In order to become an ALDI exclusive product, the producer enters into an arrangement with ALDI whereby it is agreed that particular brand of product will not be distributed or provided to any other retailer. This means that ALDI exclusive products cannot be obtained anywhere other than at an ALDI store.
4.26 The ALDI exclusive products differ significantly from the Woolworths and Coles private-label liquor ranges. Woolworths and Coles generally purchase wineries, where possible and these products then become what are known as private-label wines. The issue with this approach, in terms of the proper development of the liquor industry, has been well explained by David Prestipino in his article ‘Winestein
58 https://www.top100wines.com/currentyear/award_categories.asp
59 http://www.news.com.au/lifestyle/food/drink/supermarket-chain-aldi-has-come-up-trumps-with-its-cheap-wines-a-winner-at- sydney-international/news-story/a85c3072573f72e202198eda928835ae
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Uncorked: ‘Local’ WA wines actually owned by Woolworths, Coles’ where he described the duopoly’s approach as follows:60
To avoid certain wine taxes and further boost their huge profits, Woolworths and Coles create ‘wine brands’ (such as the Cow Bombie) under cheeky and creative (some say misleading) names.
The wines are difficult to identify, and often undercut well-known brands, small boutique and family wineries and those struggling to find a voice in an ever-increasing crowded market.
Instead of Coles Reserve Chardonnay or Woolworths Bin 666 Cabernet, you have brands like Chateau Louise (Coles) and Augustine Wines (Woolworths) for sale…wines that are actually owned by the supermarket giants themselves.
By Developing their own private-label and exclusive wines, Coles and Woolies are now competitors to the very wineries (and consumers) they are meant to serve.
Why should this worry wine drinkers? Because not only are we losing diversity and competition as the duopoly increases its share of the wine market, but the relationship hurts independent merchants across the country, who are forced to close.
If the big chains need to move a product because it is not selling, or want to replace it for their own means, they slash the wine’s price, essentially lowering the winery’s brand/reputation at the same time.
4.27 ALDI’s approach is different because it does not own the wineries that produce the ALDI exclusive products and therefore, those wineries are capable of producing other wines under a different brand to sell to other packaged liquor retailers. Further, whilst those producers will be required to produce a product to ALDI’s standards and specifications they will, nonetheless, give input and advice as the independent wine maker into developing the products. The ALDI model does not, therefore, have the same deleterious effect on the development of the liquor industry by removing independent wine makers from the market but rather makes a valuable contribution to it by providing independent wine makers with another channel to sell their product.
4.28 Given that the majority of ALDI’s liquor range comprises ALDI exclusive products, it means that the ALDI offering, overall, is unique to ALDI and simply cannot be replicated by any other liquor outlet. For the same reason, ALDI liquor services cannot be said to duplicate any existing operations.
4.29 In this regard, ALDI’s manner of trade has similarities to the cleanskin wine store concept. Whilst some cleanskin wines are offered at the major liquor stores, the cleanskin stores specialise in the product. In the same manner, while ALDI does stock some products that are provided at the major liquor stores, ALDI stores specialise in their own ALDI exclusive products which have been extremely popular with consumers.
4.30 In this way, ALDI liquor services provide an almost entirely different range of products from the major liquor stores and therefore, the ALDI exclusive products provide a
60 http://www.watoday.com.au/entertainment/your-perth/winestein-uncorked-local-wines-actually-owned-by-woolworths-coles- 20151211-gllhjo.html
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significant point of difference between the two offerings. The local community will benefit greatly from having convenient access to this special service for the first time.
4.31 The local community in this case has expressed great interest, through the market research, in purchasing the ALDI exclusive products:61
…just under two-thirds (65%) of the packaged alcohol buyer sample would find the unique range of products to be of high appeal to them. Note that the more frequent buyers (1+ per month) may be slightly more attracted to this unique feature, with 69% rating it as “extremely” (35%) or “very” (33%) appealing.
A further 31% of all buyers, and a similar figure of 33% for more frequent alcohol buyers, rated this aspect as being moderately appealing, resulting in a total of 86% of all buyers, and 89% of more frequent buyers who found some appeal in this aspect of the proposed ALDI packaged liquor offer.
Low risk features of the proposal 4.32 The ALDI liquor model clearly presents with a number of low risk elements, all of which have been proven to be successful in many of its stores in other locations.
4.33 To summarise and reiterate, the following are the key harm and risk minimising features of the ALDI Whitford City liquor proposal:
4.33.1 Its small size.
4.33.2 The bright, open-plan layout.
4.33.3 The absence of refrigeration to help avoid impulse buying and impulse drinking.
4.33.4 The limited stock range and volume.
4.33.5 The absence of an online delivery service.
4.33.6 The absence of bulk quantities of cheap mainstream products.
4.33.7 Its location/position confined within the supermarket footprint, under the close supervision of the supermarket and its staff. ALDI staff will have a clear line of sight into the liquor display/browse area at all times.
4.33.8 The lack of immediate or direct egress from the liquor area outside into the public domain. The design and layout forces customers to enter the supermarket and walk past the watchful eye of trained checkout staff.
4.33.9 The lack of signage external to the store advertising discounted liquor products.
4.33.10 The highly experienced and reputable operator.
4.33.11 The high level of staff training.
61 PRG report (DOC 8) at page 22
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4.34 Importantly also, there will be none of the following:
4.34.1 Products, advertising or promotional materials designed to entice juveniles.
4.34.2 Prominent external advertising of liquor products and their prices.
4.34.3 Large volumes of cheap bulk products displayed.
4.34.4 Volumes of items refrigerated and ready-to-drink.
4.34.5 Energy drinks stocked in the liquor display/browsing area.
______
5 Locality
5.1 As referred to earlier in this PIA, the Locality is an area of 3km radius surrounding the application site. The image below from the DES report (DOC 9) illustrates this area and plots the approximate locations of other major supermarkets in the vicinity.
5.2 The Locality for this application comprises six main suburbs – Hillarys, Kallaroo, Mullaloo, Padbury, Craigie and Beldon. Only very small portions of Sorrento and Duncraig fall within the three kilometre radius and therefore, they have been excluded from the Locality analysis to avoid distorting the assessment.
5.3 The ALDI Whitford City site is in the local government area of the City of Joondalup (City), “one of the largest local governments in Western Australia by population” and the “fast-growing northwest corridor of Perth, with its southern boundary just 15 kilometres from the Central Business District of Perth”.62
62 https://www.joondalup.wa.gov.au/kb/resident/about-joondalup
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5.4 The six main suburbs comprising the Locality and the City have been carefully studied and analysed in the preparation of this PIA.63
5.5 Further in understanding the area to be impacted by the ALDI Whitford City liquor service, the DES report (DOC 9) contemplates the store’s likely trade area, from which it will attract most of its regular customers. The report comments as follows:64
The trade area generating most of ALDI’s customers will be influenced by:
• The sprawling residential suburbs around Whitford City which are only broken by the treatment plant, Craigie Open Space and Pinnaroo Valley Park against the Mitchell Freeway to the west.
• The four-lane divided arterials which pass the site, reaching a large population within a short and convenient drive-time. Marmion Avenue carries about 35,000 cars past the centre while Whitfords Avenue is 15,000-20,000 vehicles per day east and west of Marmion Avenue.
• Low levels of supermarket competition in the locality. Outside Whitford City, retailing is limited to small neighbourhood and local centres embedded within established housing estates. For the large and affluent locality population of over 41,000 people, there is just a small Coles at Hillarys’, an ageing Woolworths at Beldon and small IGA stores at Mullaloo, Craigie and Padbury.
• The lengthy drive to other ALDI stores to the north and south-east.
5.6 The following image from the DES report (DOC 9) shows the primary catchment area65, which largely matches up with the Locality.
63 Some statistical information is only be available in respect of the City of Joondalup. The DES report (DOC 9) also provides data in respect of the different trade areas.
64 At page 12
65 At page 9
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5.7 The Locality has been studied and analysed in the context of the suburb of Hillarys (where the premises is situated), the six main suburbs that make up the Locality and the City of Joondalup.66
Nature and character of local community
5.8 Hillarys is regarded as an affluent suburb and the Locality generally shares socio- economic advantage. As shown in the images above, the Locality boasts an expansive coastline with beautiful beaches. Some of the houses in Hillarys, Mullaloo and Kallaroo are on elevated sites and enjoy views of the Indian Ocean.
5.9 The most notable feature of Hillarys is the Hillarys Boat Harbour precinct “which has a large fleet of fishing and recreational boats and a popular marina complex with shops, restaurants and a tavern attracting tourists and visitors.”67
5.10 Two key roads run through the Locality – Marmion Avenue and Whitfords Avenue. The former is a north-south artery that divides the coastal and inner suburbs. It is a busy road that carries over 30,000 vehicles per day past Westfield Whitford City Shopping Centre.68 Whitfords Avenue, west of Marmion Avenue, records more than 22,000 vehicles per day.69
5.11 The Locality is established and densely built-up with a mix of mainly single structue homes, schools, public parks, the boat harbour and beaches.
5.12 The main Locality suburbs recorded a total population of 39,955 at the 2016 Census.
Hillarys Kallaroo Mullaloo Padbury Craigie Beldon Locality
2016 Census 10,808 5,177 5,991 8,183 5,853 3,943 39,955 population
5.13 To gain some insight into the nature and character of the Locality, the table below provides some statistics from the 2016 Census that relate to the demographic and lifestyle characteristics of people living in the Locality.
Census category Hillarys City of Locality State Average Joondalup Average
Median Age 42 40 38 36
66 For example, some statistics may only be available in respect of the City of Joondalup. The DES report (DOC 9) also provides data in respect of the different trade areas.
67 DOC 9 at page 3
68 Metropolitan Traffic Digest 2013/14 – 2018/19 (https://reportingcentreresources.mainroads.wa.gov.au/public/data/xrc4111/AAWT/traffic_digest.207.pdf) at page 31
69 Metropolitan Traffic Digest 2013/14 – 2018/19 (https://reportingcentreresources.mainroads.wa.gov.au/public/data/xrc4111/AAWT/traffic_digest.207.pdf) at page 55
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Married 60.8% 55.4% 52.4% 48.8%
Never married 28.1% 30.7% 33.1% 35.2%
Language (other than Italian Afrikaans - Mandarin English) – top response
Occupation (top Professionals Professionals Professionals Professionals response) (25.3%) (23.5%) (23.1%) (20.5%)
Industry of Hospitals Hospitals Hospitals Hospitals employment (top (4.1%) (4.2%) (4.2%) (3.6%) response)
Worked full-time 53.5% 54.8% 55.6% 57.0%
Worked part-time 36.1% 33.6% 32.5% 30.4%
Median weekly $847 $776 $790 $724 personal income
Dwelling structure (top Separate Separate Separate Separate response) House House House House (88.8%) (89.0%) (91.4%) (79.1%)
House owned outright 41.1% 34.5% 33.6% 31%
House owned with a 41.7% 46.1% 46.0% 39.7% mortgage
Median mortgage $2,383 $2,100 $2,086 $1,993 repayments
Renting 15.5% 17.2% 18.3% 28.3%
Median rent $490 $410 $422 $347
5.14 The average person living in the Locality can be described as follows based on the above statistics:
5.14.1 Aged 38.
5.14.2 Married.
5.14.3 Working in a hospital.
5.14.4 Earning more than the average State income.
5.15 Other observations based on the above statistics include the following:
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5.15.1 The most common form of tenure in the Locality is to own a home with a mortgage.
5.15.2 Relative to the State average, very few people in the Locality are renting.
5.16 To support some of the 2016 Census data, the following extracts from the DES report (DOC 9) illustrate the nature and character of the primary trade area of the ALDI Whitford City store:70
• The area is dominated by detached homes, making up 91% of all dwellings. There is a much smaller proportion of townhouse (9%) compared to the Karrinyup catchment to the south and apartments are just 1% of all dwellings.
• Home ownership (37%) is well above the Perth average (29%) and is linked to the 64% of families who have lived in their home for more than 5 years.
• While the area is beginning to age, showing up in a higher proportion aged 50-64 years and 30% ‘couples with no children’, the proportion aged over 65 is consistent with the Perth average. The lack of smaller homes and apartments and retirement villages will see older residents gradually move from the area and likely replaced with more ‘couples with children’. These traditional families currently comprise 39% of all households (Perth average 35%) and contribute to larger-than-average household size of 2.66 persons.
• Tertiary education levels are consistent with the city average and a slightly higher (52%) of the workforce is in a white-collar occupation (Perth 48%). Individual income levels are 9% above the Perth average and household incomes 13% higher.
• 64% of the population was born in Australia (Perth 61%) with UK-born residents making up a high 14% compared to 9% across Perth.
The profile of the primary trade area is one of established families with older children that have lived in the area for some time. Income levels are above average from a slightly higher workforce participation rate and from more clerical, managerial and professional occupations.
5.17 The addition of the ALDI liquor offering at its new Whitford City supermarket will contribute in a unique way to the choice and diversity in the Locality for the benefit of consumers. It is entirely appropriate that the Locality be able to enjoy and access the highly popular ALDI liquor service, just as ALDI shoppers in many other locations can.
Westfield Whitford City Shopping Centre 5.18 Westfield Whitford City is “one of Perth’s major regional centres” and “dominates its northern suburbs catchment”.71 Starting from humble beginnings when it first opened in March 1978, the shopping centre has since upgraded and redeveloped to become the third largest suburban centre in the Perth metropolitan area.
70 At page 17
71 DOC 9 at page 3
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5.19 The enormous size of Westfield Whitford City is evident from the following aerial image taken from Google Maps.
5.20 One significant feature of Westfield Whitford City is its advantageous location at the intersection of Marmion and Whitfords Avenues. Those two arterials carry tens of thousands of vehicles per day past the shopping centre.72
5.21 Being exposed to such a large volume of traffic, Westfield Whitford City is strategically positioned to attract and service a very large catchment. It is reported that the centre “caters to a trade area population of more than 432,000 residents”.73
5.22 The shopping centre went through a two-stage $80 million redevelopment which was completed in September 2017. The following extract summarises the works undertaken:74
…Stage 1 provides a richly landscaped, resort-style restaurant and entertainment precinct incorporating 11 new restaurants, and an eight-screen Event Cinema complex comprising two Vmax, two Gold Class and four general auditoriums set around a vibrant open public space.
There is an amusement component at the basement level, housing a laser activity as well as a tenpin bowling alley.
Stage 2 adds a David Jones anchoring a new fashion precinct which will no doubt feature the more upmarket Australian designers with a focus on youth brands (‘athleisure’) to cater to this highly aspirational market. A new supermarket is planned with an extension of the fresh-food offering to include selected gourmet outlets catering to the affluent trade area. The existing centre will be remixed extensively.
72 Traffic data referred to earlier in this PIA
73 https://www.scentregroup.com/Our-Portfolio/Centres/westfield-whitford-city and https://www.scentregroup.com/getmedia/a8e7d33e-fc27-4f97-934f-d0252ba8164e/19-02-Whitford-Map
74 https://thewest.com.au/lifestyle/food/dining-bonanza-at-whitford-city-ng-b88581997z
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5.23 Westfield Whitford City has transformed into a dining, retail, lifestyle and entertainment precinct for Perth’s northern suburbs.75 It is anchored by Target, Big W, Coles, Woolworths and Bunnings. Below are some other statistics about the shopping centre to illustrate its massive size and regional role:76
5.24 The following images depict aspects of the remarkable redeveloped shopping centre:77
75 https://www.scentregroup.com/our-portfolio/Centres/westfield-whitford-city
76 https://www.scentregroup.com/Our-Portfolio/Centres/westfield-whitford-city
77 Taken from Google Images
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5.25 The vision of the redevelopment was to “deliver a lifestyle offer not previously available in Perth’s north” and to “set a new standard in [the centre]”.78
5.26 Indeed, the opening of the new dining and entertainment hub at Westfield Whitford City was welcomed with enthusiasm by the public. The following are some pictures from the opening in 2017:79
78 https://www.shoppingcentrenews.com.au/shopping-centre-news/development/westfield-whitford-city-wa/
79 https://www.shoppingcentrenews.com.au/shopping-centre-news/development/westfield-whitford-city-wa/
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5.27 The shopping centre is continuing to increase and diversify its offering. In addition to the ALDI supermarket, a new David Jones department store is expected to open at the centre this year.80
5.28 “In all respects, Whitford City is the dominant retail, commercial and community asset for a large area of northern Perth.”81
5.29 The new ALDI supermarket will increase the grocery and household choice for consumers. In joining Coles and Woolworths, “[t]he aggregate of three supermarkets and other specialty food shopping provides shoppers in the local catchment with a very strong food and convenience offer. This similar to the presence of Coles, Woolworths and ALDI in other major centres such as Joondalup, Mirrabooka, Morley Galleria, Midland Gate, Belmont Forum and Cockburn Central. Current and proposed redevelopments at Karrinyup and Innaloo will also open with all three supermarkets.”82
5.30 In addition to being a retail, dining and entertainment hub for the northern suburbs, Westfield Whitford City plays a part in a broader development area known as the Whitford Activity Centre. The Structure Plan was endorsed by the Western Australian Planning Commission in July 2016 and sets out the planning framework for the area outlined in the following map.83
80 https://www.perthnow.com.au/news/wa/three-new-david-jones-stores-to-open-in-perth-ng- 4314e6449d54a2ca2ee798e113c453de
81 DOC 9 at page 8
82 DOC 9 at page 9
83 Whitford Activity Centre Structure Plan (https://www.joondalup.wa.gov.au/wp-content/uploads/2018/07/Whitfords-Activity- Centre-Plan.pdf) at page 9
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5.31 The Structure Plan area shown above comprises four key districts. Westfield Whitford City is in the Retail District. The Banks District encourages residential and office uses.
5.32 The objectives of the Structure Plan include creating a transitional mixed use area, enabling improved pedestrian connections and accommodating the expansion of retail services to “better [reflect] the local demography and current consumer expectations, whilst improving the visual amenity and public realm interface”.84
5.33 The Structure Plan notes that “[t]he Retail District will provide residents and visitors with convenient access to a mix of retail, office, leisure, entertainment, recreation and community facilities within both new and renovated buildings that respond to current consumer and community demands and desires. The retail district will be characterised as a destination that is vibrant and accessible, with a unique character and sense of place evolving from the retail activity of the centre.”85 The redevelopment of Westfield Whitford City is clearly consistent with this objective. The addition of the ALDI supermarket, together with its popular and unique liquor service, is also aligned with the statement in the Structure Plan.
5.34 ALDI Whitford City will ensure that the diversity and choice of packaged liquor continues to improve within the Locality and meets the requirements of consumers for liquor.
______
6 Section 5
6.1 In accordance with the Act and PIA Policy, the applicant has had regard for the matters outlined in section 5 of the Act.
84 Whitford Activity Centre Structure Plan (https://www.joondalup.wa.gov.au/wp-content/uploads/2018/07/Whitfords-Activity- Centre-Plan.pdf) at page 4
85 Whitford Activity Centre Structure Plan (https://www.joondalup.wa.gov.au/wp-content/uploads/2018/07/Whitfords-Activity- Centre-Plan.pdf) at page 22
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6.2 Comprehensive submissions addressing section 5 matters are contained throughout this PIA and also in more detail in the applicant’s Legal Submissions (DOC 7).
______
7 Harm or ill-health – section 38(4)(a)
7.1 The applicant has considered the various risk factors and indicators of the Locality that are contemplated in the PIA Policy. These include at risk groups and sub- communities, the incidence of alcohol-related hospital presentations and crime.86
7.2 Information and submissions in relation to these matters are addressed in detail in this section of the PIA. Collectively, they reveal no stand-out risk factors of the Locality such that there should be any concern surrounding the grant of the licence. In fact, the information reveals many positive factors in this case.
7.3 Furthermore, any potential negative impact of the licence should be considered in light of the low risk features of the ALDI liquor model, which are described throughout this PIA. This proposition is supported by the Liquor Commission’s finding in relation to the application for ALDI Harrisdale:87
There is nothing to suggest that the granting of the licence will result in an increase in harm and ill-health. The small size of the proposed premises, the nature of its operation and the limited number of products are significant factors in reaching this conclusion.
At risk groups and sub-communities 7.4 With reference to the 2016 Census statistics88, the groups and sub-communities in the Locality that are described as “at risk in the PIA Policy have been identified and considered. In this regard, the following table compares the statistics for the suburb of Hillarys itself, the Locality average89, the City of Joondalup and Western Australia in respect of some of those at risk groups. The comparison provides context for the Locality to be analysed.
Census category Hillarys Locality City of Western Average Joondalup Australia
‘At risk’ group: “Children and young people”
Persons aged 14 and younger 19.1% 19.2% 19.6% 19.2%
Persons aged 19 and younger 26.8% 26.1% 25.9% 25.3%
86 Pages 4 and 5 of the PIA Policy
87 ALDI Foods Pty Ltd v Director of Liquor Licensing LC 09/2017 [38(b)] (ALDI Harrisdale)
88 http://www.abs.gov.au/websitedbs/D3310114.nsf/Home/2016%20QuickStats
89 The Locality Average is calculated by adding the relevant statistical data for each of the six suburbs (Hillarys, Craigie, Padbury, Kallaroo, Mullaloo and Beldon) and dividing it by six.
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Census category Hillarys Locality City of Western Average Joondalup Australia
Average age of persons in 42 40 38 36 suburb
‘At risk’ group: “Aboriginal people and communities”
Aboriginal and Torres Strait 0.5% 0.6% 0.8% 3.1% Islander people
‘At risk’ group: “Families”
Couple family without children 37.5% 36.3% 37.3% 38.5%
Couple family with children 52.5% 50.5% 47.8% 45.3%
One parent family 9.2% 12.0% 13.6% 14.5%
Other family 0.8% 1.2% 1.2% 1.7%
‘At risk’ group: “Migrant groups from non-English speaking countries”
Australia as country of birth 61.0% 41.0% 60.2% 60.3%
Top three responses as to English English English English ancestry Australian Australian Australian Australian Irish Irish Irish Irish
English only language spoken 86.4% 85.3% 86.0% 75.2% at home
Households where a non 14.6% 14.4% 13.1% 19.4% English language is spoken
‘At risk’ group: “People in low socio-economic areas”
Worked full-time 53.5% 54.8% 55.6% 57.0%
Worked part-time 36.1% 33.6% 32.5% 30.0%
Unemployed 6.5% 6.9% 6.8% 7.8%
Median weekly income – $847 $776 $790 $724 personal
Median weekly income - family $2,563 $2,230 $2,139 $1,910
Median weekly income - $2,283 $1,957 $1,877 $1,595 household
Earning more than $3000 36.6% 26.0% 23.1% 19.2% gross weekly income
7.5 The information above presents the following positive risk assessment factors of the Locality, in accordance with the PIA Policy:
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7.5.1 The median age is considerably higher than the State average suggesting a mature demographic.
7.5.2 There is a significantly lower proportion of Aboriginal and Torres Strait Islander persons living in the Locality compared to the State average (0.8% compared to 3.1%). This is a very positive consideration when assessing the existence of this at risk group and the potential for the grant of the licence to cause harm and ill-health.
7.5.3 Whilst there is a higher percentage of families with children living in the Locality, there is also a lower proportion one parent families in the Locality compared to the State average.
7.5.4 The number of people within the Locality that were born in Australia is similar as the State average while the proportion of people that only speak English at home is considerably higher than the State average. This would tend to suggest that there are low levels of people within the Locality from non-English speaking backgrounds compared to the State average.
7.5.5 The unemployment rate in the Locality is lower than the State average and the median income is higher in the Locality. These factors suggests that the Locality is in a positive state of socioeconomic health and could not be considered to be a low socioeconomic area.
7.5.6 The percentage of people having more than a $3,000 gross weekly income in the Locality is much higher than the State average.
7.6 Further in terms of socio-economic status, the Locality ranks highly on the Socio- Economic Indexes For Areas (SEIFA). The decile (out of 10) for each individual suburb is listed in the table below and the average for the Locality is a score of 8. The City of Joondalup itself scored a decile of 10 out of 10. This reflects an area that is highly advantaged compared to the rest of the State.
Suburb Decile score (within WA)
Hillarys 10
Mullaloo 10
Craigie 5
Kallaroo 10
Beldon 5
Padbury 8
Locality average 8
City of Joondalup 10
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7.7 Notably, three out of the six suburbs scored 10, including Hillarys where ALDI Whitford City will be situated.
7.8 The following sub-paragraphs provide information as to other at risk groups contemplated in the PIA Policy that cannot be quantified by Census data:
7.8.1 “people from regional, rural and remote communities” – the City forms part of the metropolitan area and cannot, therefore, be considered to be a rural or remote community.
7.8.2 “mining communities or communities with a high number of itinerant workers” – the Locality is not a mining community nor is it known to attract large groups of itinerant workers. It was not possible to identify actual numbers of itinerant workers, although it is presumed that some would exist in the area.
7.8.3 “communities that experience high tourist numbers” – Hillarys Boat Harbour is a feature of the Locality that attracts large numbers of tourists regularly. REIWA describes the harbour as a “large marina and tourist development”90. There are more than 4.5 million visits to Hillarys Boat Harbour each year.91 The growing popularity of Westfield Whitford City may attract tourists, however, it is not known as a tourist destination in its own right.
7.9 It is clear that based on the information above, the Locality presents almost no risk factors. Any negative issues are negligible at best and are not unusual or particularly adverse in terms of at risk groups and sub-communities. The Hillarys Locality should not be denied the opportunity to benefit from ALDI’s high quality, value-for-money offering that is very popular elsewhere. The community is entitled to enjoy all that ALDI has to offer, including liquor.
Social health indicators 7.10 As regards crime, the following graph illustrates data published by WA Police92 in respect of the individual suburbs of the Locality between the financial years of 2009/10 and 2017/18.
90 https://reiwa.com.au/suburb/hillarys/
91 https://www.transport.wa.gov.au/mediaFiles/marine/MAC_FS_Hillarys_Boat_Harbour.pdf
92 https://www.police.wa.gov.au/Crime/CrimeStatistics#/start
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7.11 Hillarys has the highest number of recorded crime offences over the time period analysed. This could be attributed to the fact that it has the largest population (10,808 people based on the 2016 Census and 4.5 million visits to Hillarys Boat Harbour as referred to above). As both Whitford City and Hillarys Boat Harbour are located within that suburb it means that there is a very high volume of people in the area at all times.
7.12 The graph below illustrates the data for the Locality, being the sum of the crime statistics for each of the individual suburbs. The red dotted line reflects a general downward trend in crime offences in the Locality over the time period analysed.
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7.13 The applicant will implement its tried and tested safety and security measures to minimise crime associated with the ALDI operations. These measures are addressed in detail further on in this PIA. In addition to those measures, the likelihood of the liquor service contributing to alcohol related crime is reduced by the following mitigating factors:
7.13.1 Small nature of the liquor proposal.
7.13.2 Simple and open layout of the liquor area.
7.13.3 Close staff surveillance achieved by the simple and open layout.
7.13.4 Location within the confined safety of the supermarket building.
7.13.5 Lack of external frontage.
7.13.6 Location of the liquor area adjacent to the checkout and therefore, under constant close staff surveillance and supervision.
7.13.7 Absence of refrigeration, which removes the opportunity for impulsive desires to steal liquor for immediate consumption.
7.13.8 Lack of a walk-in cool room, which is ordinarily hidden from staff view, providing cover and convenience for would-be criminals.
7.13.9 Installation of CCTV surveillance throughout the supermarket, including the proposed licensed area.
7.14 The Department of Health’s Drug and Alcohol Office Surveillance Report 2014 provides some useful information as to alcohol-related hospitalisations. The extract below from the report contains statistics in respect of the City of Joondalup and reveals that it experiences significantly rates of alcohol-related hospitalisations compared with the corresponding State population between 2007 and 2011.93 This has a positive effect on the risk profile of the Locality from an alcohol-related harm and ill-health perspective.
93 ‘Alcohol-related hospitalisations and deaths in Western Australia, Regional Profile: North Metro’ at page 16. As at the date of this PIA, the 2014 report is understood to be the most current version although a copy is no longer available online and so no website link has been provided. However, a copy may be provided to the licensing authority if requested.
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7.15 The evidence above suggests that the level of alcohol-related ill-health in the Locality is, on balance, below average. The ALDI liquor service as proposed at Whitford City is most unlikely to contribute to the rate of alcohol-related ill-health in the Locality. To reiterate, the low risk proposal involves a careful selection of less than 100 different products to be sold from a tiny section of the supermarket. Other harm minimising strategies are detailed in the next sub-section of this PIA.
Minimising harm and ill-health
7.16 The applicant company is a highly experienced and sophisticated operator when it comes to retailing liquor products. The licensing authority in New South Wales has found ALDI to be a good operator in granting around 150 licences to it. Whilst some licence applications have been refused, the overwhelming majority have been approved.
7.17 Harm minimisation from the sale and supply of liquor is very familiar to ALDI and at the height of operational policies. ALDI has been successfully implementing measures that minimise harm and ill-health at its large number of existing liquor outlets for many years. Its liquor store model has been much tried and tested and proven to be entirely positive.
7.18 Included in the Applicant’s Case are various operational policy documents (DOCS 6, 11 and 12) which the applicant has developed with the benefit of extensive experience. The practises and procedures in those documents will be implemented to facilitate compliance and to create a business that both endorses and encourages responsible drinking.
7.19 One of the main strategies is to establish and maintain the low risk ALDI liquor model that is detailed in this PIA. In particular, the licensed area will be relatively very small
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with no refrigerated products. The licensing authority in New South Wales has found that “the small scale of the proposed licensed area is a mitigating factor”.94
7.20 The design and position of the licensed area will enable a heightened level of visibility by staff and control. The lack of refrigeration reduces the likelihood and motivation of customers purchasing liquor to drink immediately outside or within the vicinity of the store or at any nearby open public spaces. This specifically reduces the likelihood of customers making impulsive or irresponsible purchases.
7.21 In terms of the liquor items themselves:
7.21.1 The carefully selected range of liquor stock will include only a small number of cask wines and pre-mixed spirit drinks which are commonly known to be higher risk items.
7.21.2 Products will not be labelled or promoted with emotive titles that could potentially encourage rapid or excessive consumption.
7.21.3 Low and mid-strength products will be available at the store.
7.21.4 Establishing the liquor area amongst food and groceries promotes responsible consumption of liquor which is a well established principle of harm minimisation.
7.22 ALDI has also factored advertising and promotion into its harm minimisation strategies. Flamboyant and highly suggestive advertising posters, encouraging rapid, excessive or juvenile drinking will not be displayed. Nor does ALDI advertise discount liquor prices for certain periods as such “sales” may encourage customers to purchase more liquor than they otherwise would have for fear of missing out on the special price.
7.23 Placing a heavy emphasis on staff training and management is another key strategy to ensuring policies and practices are implemented and laws are complied with. ALDI is a market leader in terms of staff training and development. Its impressive approach in this regard is detailed in the following sub-paragraphs.
7.23.1 ALDI was recognised for its efforts in this area of its operations when it was named as the Retailer of the Year for 2016 and 2018 by the Australian Retail Association. Its continuing investment in its staff with above industry pay rates, development opportunities and its supportive approach to staff were cited as being highly influential.95
The emphasis we place on training and continuous improvement is one of the reasons that people really value working at ALDI. The ALDI Academy
94 ALDI Vincentia dated 4 April 2016 [119] - https://www.liquorandgaming.justice.nsw.gov.au/Documents/ilga/decisions-of- interest/Decision-ALDI_Vincentia-Application-PLL-Granted-040416.pdf
95 http://www.smartcompany.com.au/industries/retail/73746-aldi-crowned-australias-retailer-year-embarks-major-expansion- 100-new-stores/
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team work predominantly in the people space including recruitment, performance and learning and development across all areas of ALDI Australia. Whether it’s leadership training for our management teams, training our warehouse staff in receiving procedures or providing operational equipment training for the people running our stores, the team collaborate with subject matter experts inside and outside the business to develop solutions that allow our people to thrive in any role.96
7.23.2 The West Australian newspaper reported that ALDI is “luring university graduates with what could be the highest graduate salaries on offer in WA”, which was said to be “[t]rying to get hold of the best people at management level”.97 ALDI has a strong drive for quality personnel accompanied by high standards and expectations for staff. These attitudes and policies contribute to a heightened level of risk management through the whole organisation.
7.23.3 The applicant invests considerable time, effort and resources into staff. In a 2016 media article, ALDI’s induction and ongoing training regime was discussed in the following terms:98
‘On first joining the company, all new employees receive comprehensive induction training’, the spokesperson said. Aldi also strives towards fostering career development.
‘We offer various educational and training initiatives including traineeships, a diploma of management for store and warehouse staff, and coaching and leadership training for management.’
Newly hired employees will also be given access to the Aldi Academy website during on-boarding – a platform which provides information about Aldi as well as learning pathways tailored to each specific role.
‘This learning pathway has been custom designed to teach, guide and support new employees throughout their journey at Aldi, giving them all of the necessary skills to complete their role.’
7.23.4 Every ALDI staff member is required to undertake detailed internal training and an induction programme, which will certainly apply for staff at the ALDI Whitford City store. This involves education on a wide variety of facets of the business and includes liquor product knowledge. To help ensure high standards are achieved at all times, all ALDI staff are employed on a permanent basis.
7.23.5 The applicant will ensure all staff at the ALDI Whitford City store are properly trained as to their responsibilities under the Act, the licensing
96 https://www.aldiunpacked.com.au/Article/October-2018/ALDI-crowned-Retail-Employer-of-the-Year
97 https://thewest.com.au/news/wa/aldis-cash-lure-for-graduates-ng-b88428485z
98 http://www.hcamag.com/hr-news/how-aldi-staff-learn-it-link-it-live-it-222306.aspx
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authority’s policies, matters of safety and all other laws and regulations applicable to the proper conduct of the business.
7.23.6 The store will be adequately staffed at all times with appropriately trained and knowledgeable people. In addition to having sufficient numbers of approved managers at all times, other part-time and full-time staff will also be employed. In particular, at least one approved manager will be at the store at all times.
7.23.7 All staff wear a smart uniform bearing the company logo, as pictured below.99 Their presentation is considered by the applicant to be important both in terms of upholding its image and also in terms of portraying a professional and responsible approach to the business.
7.23.8 Notably, 71% of the survey respondents considered ALDI’s strong RSA policy, which is a fundamental aspect of the ALDI approach to liquor retailing, as a “highly appealing attribute”.100
7.24 Another harm minimising element of the ALDI model is the focus on quality of product and value-for-money propositions and not just price. The applicant invests enormously in providing customers with high quality products that offer genuine value-for-money. Many of its liquor items have been awarded accordingly. This approach is entirely consistent with consumer trends, summarised as follows:101
Australia’s near $17 billion retail liquor market grew by 3.3% in 2016, which amounted to $546 million. Although consumers are opting for both premium and value priced liquor products across categories, value growth (+ 3.3%) again outpaced volume growth (+ 1.5%). It signals a retail liquor industry that has adapted to consumer’s changing drinking habits, needs and preferences with added value products and in-store merchandising. It is also evidence of “choice premiumisation” as more drinkers opt for quality over quantity, and a superior taste experience rather than just the lowest price.
7.25 In respect of the issue of juveniles, very strict policies will apply. ALDI is very aware of the fact that juveniles will be in the supermarket from time to time, some of whom may be unaccompanied.
99 https://www.aldicareers.com.au/Careers
100 DOC 8 at page 6
101 ALSA-IRI State of the Industry Report, March 2017 (DOC 22) at page 5
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7.25.1 The store layout and security systems will facilitate and ensure a constant and high degree of surveillance over the liquor area and checkout to safeguard the proper management of juveniles. ALDI has successfully managed this issue at its existing stores elsewhere in Western Australia.
7.25.2 No liquor will be sold or supplied to juveniles or anyone who is suspected of trying to obtain liquor for a juvenile. The applicant will participate in the “ID Under 25” policy. The licensee and its staff will go beyond the requirement to ask customers suspected of being under the age of 18 to prove their age and in fact ask all customers suspected of being under the age of 25 for age verification.
7.25.3 The applicant will operate under a strict policy, which will be taught to and perpetuated with its staff, whereby liquor is not sold or supplied to anyone whom it is suspected might give the liquor to a juvenile, including guardians and parents.
7.25.4 Juveniles observed to be loitering near the liquor area will be asked to move on and no juveniles will be permitted in the licensed area unless accompanied by a responsible adult.
7.25.5 Lollies or other items commonly known to attract the attention of juveniles will not be stocked in the liquor display/browse area.
7.25.6 The liquor area will be subject to a high level of surveillance and security from the relevant checkout.
7.25.7 Unaccompanied juveniles in the supermarket will be directed to an unlicensed checkout to make any purchases.
7.26 A clear example to confirm ALDI’s high standards in its liquor service is when the company came under scrutiny from the public for the strictness of its approach to liquor and juveniles. Some stores in New South Wales have refused service to adults because staff have witnessed a juvenile touching the liquor items, even where they have touched the items simply to stop them from falling over in a trolley.102
7.27 It is relevant that adult consumers have felt comfortable shopping in an ALDI liquor area with their children as clearly depicted in the images below taken recently at one of the busy operating ALDI stores in WA with a liquor section.103
102 http://www.news.com.au/finance/business/retail/aldis-strict-underage-alcohol-policing-leaves-shoppers-high-and-dry/news- story/c7beaa2c4b8e1f0345b3545c98c7789c
103 Personal details have been blacked out for privacy reasons. Full images available to the licensing authority if required.
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7.28 As was presented by the applicant to the State Government in South Australia (DOC 19), ALDI has made careful and calculated decisions in respect of its liquor proposal based on considerable research, experience and expert advice. The information has “guided [ALDI’s] attitudes regarding the sale of alcohol in supermarkets” and has revealed the following:104
7.28.1 “There is no evidence linking increased availability of alcohol and increased consumption. Consumption of alcohol per capita has been declining over the past decade in Australia despite an increase in the number of outlets of sale [Australian Bureau of Statistics. (n.d.). Apparent Consumption of Alcohol. Retrieved January 14, 2016, from http://www.abs.gov.au/ausstats/[email protected]/Lookup/4307.0.55.001main features32010-11]”.
104 At pages 3 and 13
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7.28.2 “Restricted sale of alcohol in supermarkets can have a positive social effect by ensuring alcohol is viewed as a complement to food”.
7.28.3 “Safe consumption initiatives can assist alcohol retailers in ensuring harm is minimized to at-risk groups”.
7.29 The paper submitted by ALDI to the South Australian Government (DOC 19) also relevantly contained the following:105
According to published research, there is no link between the number of liquor outlets and the size of the liquor market. ABS statistics show that, since 2008, per capita consumption of alcohol has reduced from 10.75 litres (2008) to 9.71 litres (2014), a national reduction of approximately 10% over that period. [Australian Bureau of Statistics. (n.d.). Apparent Consumption of Alcohol. Retrieved January 14, 2016, from http://www.abs.gov.au/ausstats/[email protected]/Lookup/4307.0.55.001main features32010-11].
At the same time, the number of bottleshop licenses in Australia has increased from 5315 to 6421. [Australian Liquor Stores Association]
7.30 With this intelligent background ALDI has developed a liquor model that is both responsible and required by consumers.
7.31 In New South Wales, notwithstanding that alcohol is sold in grocery stores and that has been occurring for many years, including at hundreds of ALDI stores, there has been a “decrease in daily alcohol use [which] occurred between 2011 (9.8%) and 2015 (7.5%).”106 Further, “[i]n 2014, about two-thirds of high school students (65.1%) reported ever having an alcoholic drink. The proportion of high school students who drank alcohol in the last 12 months decreased substantially between 2005 (63.5%) and 2014 (43.7%).”107
7.32 The graph below shows the frequency in which people in New South Wales consume liquor and indicates that liquor is not consumed at high daily levels. ALDI liquor services have operated in NSW during the period referred to in the graph below. 108
105 At pages 3 and 13
106 http://www.health.nsw.gov.au/hsnsw/Publications/chief-health-officers-report-2016.pdf at page 6
107 http://www.health.nsw.gov.au/hsnsw/Publications/chief-health-officers-report-2016.pdf at page 6
108 http://www.health.nsw.gov.au/hsnsw/Publications/chief-health-officers-report-2016.pdf at page 6
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7.33 “The proportion of people [in NSW] who reported drinking at levels that put them at long-term risk of harm fell from 31.4% to 25.9% between 2006 and 2015—a reduction of 5.5%.”109
7.34 ALDI’s experience in the eastern states in relation to ALDI’s more than 300 liquor licences and the trend of the authorities to continue to grant ALDI licences confirms that the ALDI model does not cause noticeable harm and ill-health.110 Even though the licensing authorities in the eastern states have refused some ALDI applications over many years, they have clearly found ALDI to be an organisation worthy of holding a licence on hundreds of occasions, including more than 150 times in New South Wales where it has been found that “the small scale of the proposed licensed area is a mitigating factor”.111
109 http://www.health.nsw.gov.au/hsnsw/Publications/chief-health-officers-report-2016.pdf at page 8
110 As stated earlier in this document, it is acknowledged that a small number of licence applications have been refused.
111 ALDI Vincentia dated 4 April 2016 [119]
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7.35 Relevantly also, the most recent published data has revealed that “the majority of Australians are still enjoying alcohol responsibly and we are still drinking at 50 year lows”.112
7.36 Every effort will be made by the applicant to conduct business under the Whitford City licence in a manner that minimises the potential for harm or ill-health to occur as a result of the liquor store licence operating.
7.37 The applicant is an upstanding corporate citizen which operates pursuant to several high level standards and policies. ALDI has a considerable presence in the public domain, which it proposes to grow in Western Australia. It is in ALDI’s interests to ensure that the liquor service at ALDI Whitford City is successful in all respects, including genuinely minimising harm.
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8 Impact on amenity, quiet or good order – section 38(4)(b)
8.1 The new ALDI supermarket will be a purpose built and modern facility that is designed to complement the local amenity. The redevelopment of the shopping centre overall has improved the amenity within the area and there is a need to continue to improve the services and facilities on offer as the broader redevelopment of the surrounding area continues under the Whitford Activity Centre Structure Plan.
8.2 Despite its relatively tiny liquor display/browse area of only approximately 30m2, the ALDI Whitford City liquor proposal will make a big and valuable contribution towards the services and facilities at the Westfield shopping centre.
8.3 In terms of the impact of the liquor display/browse area on the amenity, it is important to reiterate that it will not have any external frontage, façade or overt signage. It will be contained inside the ALDI supermarket footprint. Further on this point, the intended manner of trade is for the liquor service to complement the grocery and household offering in the supermarket. The premises will not operate as a stand- alone liquor outlet and therefore, there will be no impact on the streetscape or external amenity whatsoever.
8.4 Further, the overall supermarket will be operating amongst many other shops and businesses at the commercial site. The ALDI Whitford City supermarket and if approved, its a liquor section, is therefore most unlikely to lessen the quiet or good order of the Locality in any way. The fact that the shopping centre has operated at the site for many decades means that the coming and going of delivery trucks and other general activity at the site should not pose any issues from a quiet or good order perspective.
Outlet density 8.5 The density of other licensed facilities is relevant to the analysis of the amenity of the surrounding area. Pursuant to the PIA Policy’s requirements, the applicant has
112 https://www.theshout.com.au/news/total-alcohol-consumption-remains-at-50-year-lows/
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identified all of the licensed premises within the Locality, based on records published by the licensing authority.113 These are listed in the table below.114
No. Licence Type Premises Name Premises Address
1 Liquor Store BWS - Beer Wine Spirits Woolworths Supermarket, Whitfords City Shopping Centre Whitfords Avenue, Hillarys
2 Liquor Store Hillarys Cellars Shop 17B, Hillarys Shopping Centre 110 Flinders Avenue, Hillarys
3 Liquor Store WA Cleanskin Cellars @ Shop 236 Whitford City Shopping Whitfords Centre, corner Whitfords and Marmion Avenue, Hillarys
4 Liquor Store BWS - Beer Wine Spirits Adalia Street, Kallaroo Kallaroo
5 Liquor Store Cellarbrations Mullaloo 11 Koorana Road, Mullaloo
6 Liquor Store Liquorland Padbury Shopping Centre, Warburton Avenue, Padbury
7 Liqu or Store BWS - Beer Wine Spirits Shop 1, Seacrest Village Shop Seacrest Centre, 7 Harmen Road, Sorrento
8 Tavern Beldon Tavern (with Thirsty Corner Gunter Grove & Marmion Camel drive-thru bottle shop) Avenue, Beldon
9 Tavern Craigie Tavern (with 111 Eddystone Avenue, Craigie Bottlemart drive-thru bottle shop)
10 Tave rn The Northshore Tavern and Corner Marmion and Whitford Bistro (with Bottlemart drive- Avenues, Hillarys thru bottle shop)
11 Tavern Whitfords Brewing Company Shop MM6, Westfield Whitford City, (over-the-counter packaged 470 Whitfords Avenue, Hillarys liquor sales)
12 Tavern The Breakwater Hillarys Boat Harbour, Sorrento Quay, Hillarys
13 Tavern Mullaloo Beach Hotel 10 Oceanside Promenade, Mullaloo
14 Club Hillarys Yacht Club Inc West Coast Drive, Hillarys
15 Club Restricted North Shore Clubhouse 11 Henderson Drive, Kallaroo
113 https://portal.rgl.wa.gov.au/forms/fr/search/findalicence/new
114 The premises listed in the table are identified as being in the Locality, based on the approximate straight-line distance from the proposed ALDI Whitford City store as calculated by Google Maps.
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No. Licence Type Premises Name Premises Address
16 Club Restricted Mullaloo Surf Life Saving Oceanside Promenade, Mullaloo Club
17 Club Restricted Mullaloo Squash Club Inc 25 Koorana Road, Mullaloo
18 Club Restricted Joondalup United Football Charonia Park, 61 Charonia Road, Club Inc Mullaloo
19 Club Restricted Whitford Amateur Football MacDonald Reserve Clubrooms, Club Marmion Avenue, Padbury
20 Club Restricted Whitfords & Districts Cricket MacDonald Reserve Clubrooms, Club Marmion Avenue, Padbury
21 Club Restricted The Northern Warriors Forest Road, Padbury Veterans Football Club Inc
22 Club Restricted Joondalup United Football Forrest Park Community Sporting Club Inc Facility, Forrest Road, Padbury
23 Club Restricted Joondalup United Football 61 Gradient Way, Beldon Club Inc
24 Club Restricted Sorrento Duncraig Senior 101 Seacrest Drive, Sorrento Cricket Club Inc
25 Nigh tclub Bar 1 Shop 17 Sorrento Quay, Hillarys Boat Harbour, Hillarys
26 Restaurant California Pizza Kitchen Shop 223 Sorrento Quay Boardwalk, Hillarys
27 Restaurant 3Sheets 28 Southside Drive, Hillarys Boat Harbour, Hillarys
28 Restaurant Seafood Nation Shop 52 Hillarys Boat Harbour, Sorrento Quay, Hillarys
29 Restaurant Eccolo Shop 5, 110 Flinders Avenue, Hillarys
30 Restaurant Hurricanes Grill Shop 203 Sorrento Quay Boardwalk, 58 Southside Drive, Hillarys
31 Rest aurant Northside Hillarys 95 Northside Drive, Hillarys
32 Restaurant Mia Cucina 1/45 Northside Drive, Hillarys
33 Restaurant Toscanini's On Quay Shop 53 and 54 Southside Drive, Hillarys
34 Restaurant Over Board Cafe Shop 42 Sorrento Quay Boardwalk, Hillarys
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No. Licence Type Premises Name Premises Address
35 Restaurant Grill'd Hillarys Shop 26 Sorrento Quay Boardwalk, Hillarys Boat Harbour, Hillarys
36 Rest aurant The Local Shack Shops 50 & 57 Skycorp Building, Sorrento Quay, Hillarys Boat Harbour, 28 Southside Drive, Hillarys
37 Restauran t Flinderz Cafe Shop 7, 110 Flinders Shopping Centre, corner Flinders Ave and Waterford Drive, Hillarys
38 Restaurant Lot One Kitchen Tenancy A, 46 Angove Drive, Hillarys
39 Restaurant Bangkok Brothers Whitford Westfield Whitford City, Shop 313, City corner Marmion and Whitfords Avenue, Hillarys
40 Restaurant East Village (Whitford City) Tenancy 1-312 Westfield Whitford City, 470 Whitfords Avenue, Hillarys
41 Resta urant Miss Chow's Tenancy 1-314 Westfield Whitford City, corner Marmion & Whitfords Avenue, Hillarys
42 Restaurant Gami Chicken Tenancy 1-315, Zone 05 Ground Retail Level, Westfield Whitford City, corner Marmion & Whitfords Avenue, Hillarys
43 Res taurant Hunter & Barrel Shop 322 Westfield Whitford City, corner Marmion and Whitfords Avenue, Hillarys
44 Res taurant Dough Pizza Shop 320A Westfield Whitford City, 470 Whitfords Avenue, Hillarys
45 Restaurant Bombay Talkies Shop 320B Westfield Whitford City, 470 Whitfords Avenue, Hillarys
46 Restaurant Guzman Y Gomez Whitfords Tenancy 1-316 Ground Floor, Westfield Whitford City, corner Marmion & Whitfords Avenue, Hillarys
47 Restaurant Grill'd Whitford City Shop 319 Westfield Whitford City, corner Marmion and Whitfords Avenue, Hillarys
48 Restaurant Nando's Hillarys Shop 28 Sorrento Quay Boardwalk, Hillarys
49 Restaura nt Gurkhas Nepalese Shop 4-5 Adalia Street, Kallaroo Restaurant
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No. Licence Type Premises Name Premises Address
50 Restaura nt Swell Mullaloo Beach 11 Oceanside Promenade, Mullaloo
51 Restaurant Purple Goat Cafe Shop 33 Sorrento Quay, 58 Southside Drive, Sorrento
52 Restaurant Little C's Pizzeria Shop 221 Hillarys Boat Harbour, Sorrento Quay, Sorrento
53 Special Facility AQWA The Aquarium of Hillarys Boat Harbour, Sorrento Quay, Licence Western Australia Hillarys
54 Special Facility Rottnest Fast Ferries Shop 56 Southside Drive, Sorrento Licence Quay, Hillarys
55 Special Facility MV Voyager IV Shop 56, Southside Drive, Sorrento Licence Quay, Hillarys
56 Special Facility Event Cinemas Westfield Whitford City Shopping Licence Centre, 470 Whitfords Avenue, Hillarys
57 Spec ial Facility iPlay Whitfords Tenancy 1 MM-5, Whitfords City Licence Shopping Centre, corner Marmion & Whitfords Avenue, Hillarys
58 Special Facility Perth Social Club Pty Ltd 22 Gunida Street, Mullaloo Licence
59 Tavern The Harbour Terrace Bar & Shop 202, First Floor, Skycorp Restricted Grill Building, Hillarys Boat Harbour Southside Drive, Hillarys
8.6 The different classes of licence identified in the table above provide general some indication of the different services. Out of 59 licensed premises in the Locality:
8.6.1 11 are clubs.
8.6.2 19 are situated at the Hillarys Boat Harbour and Sorrento Quay waterside precinct.
8.6.3 14 are in Whitford City Shopping Centre, comprising 9 restaurants, one tavern, two special facility licences and two liquor stores.
8.6.4 27 are restaurant licences (45.8%). That represents almost half of the Locality’s outlet density.
8.7 The most relevant licensed premises to consider are those that are permitted to sell packaged liquor to the general public. In this case, based on research by the applicant and DES, those premises are the seven liquor stores and four taverns which have a dedicated packaged liquor sales component.
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8.8 The DES report (DOC 9) contains a map illustrating the approximate locations of the above premises.115
8.9 There are four packaged liquor facilities operating at Westfield Whitford City:
8.9.1 BWS Beer Wine Spirits
8.9.2 WA Cleanskin Cellars
8.9.3 Whitfords Brewing Co (with over-the-counter sales of packaged liquor)
8.9.4 The Northshore Tavern and Bistro (with a drive-thru Bottlemart)
8.10 The locations of these four licences within the shopping centre precinct are identified in the image below:116
115 At page 26
116 DOC 9 at page 25
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8.11 The fact that there are existing packaged liquor services at Westfield Whitford City should not impede the grant of the ALDI licence. The ALDI proposal is distinctly different from those four outlets. The following additional submissions and information are provided on this point:
8.11.1 The Liquor Commission found that there “is a significant diversity between the products sold by ALDI and the BWS store…”117 in the ALDI Harrisdale decision.
8.11.2 The Bottlemart drive-thru attached to The Northshore Tavern and Bistro is a considerable distance from the ALDI store and situated outside the shopping centre building. ALDI shoppers will be considerably inconvenienced to have to travel across the whole shopping centre site and to purchase packaged liquor from there. The Bottlemart outlet does not provide one stop shopping.
8.11.3 Whitfords Brewing Company sells its own beer products. There is no dedicated floor space for retail liquor and so the packaged liquor sales take place over the counter. This establishment is more focused on dining and on-premises consumption of craft beer.
8.11.4 WA Cleanskin Cellars, as its name suggests, offers only cleanskin wines.
8.12 The following finding in the DES report (DOC 9) supports the above comparison:118
…The retail liquor experiences could be categorised as:
• BWS catering to a broad range of everyday liquor needs, leveraging the high customer traffic through Woolworths and the specialty food mall;
• WA Cleanskins offering a more specialised range of own-label wines;
117 [43(g)]
118 At page 25
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• Northshore Tavern offering a more convenient, external drive-through service; and
• Whitford Brewing Co. promoting of its own brewed beers and good quality meals in a range of comfortable indoor and external lounge and bar areas.
8.13 It is reiterated that the ALDI Whitford City liquor service will be unique and almost entirely unlike the existing services in the Locality. What is proposed is a modest liquor range comprising largely of award winning and value-for-money products, through a modern one-stop-shop concept that has the potential to offer an unrivalled level of convenience for shoppers. The following are key additional distinguishing features of the ALDI liquor proposal:
8.13.1 The majority of ALDI’s products are exclusive and not available at any of the other liquor outlets.
8.13.2 The display/browse and checkout section in the ALDI Whitford City supermarket will comprise only approximately 35m2, significantly smaller than many of the other packaged liquor outlets. The bespoke ALDI liquor service will be an ancillary but highly valuable component of its overall service.
8.13.3 There will be no refrigerated liquor products at ALDI Whitford City. This is a harm minimising factor of the ALDI liquor service and speaks to its genuine intention to complement its household and grocery offering.
8.13.4 None of the other packaged liquor outlets can offer any one-stop-shopping convenience to ALDI shoppers in the same way that ALDI Whitford City will if the licence application were to be granted.
8.14 Interestingly the DES report (DOC 9) notes that there “is a limited choice for a large, sprawling shopping centre with over 6 million visitors per annum”.119
8.15 The following finding in the DES report (DOC 9) is also relevant in this regard:120
Other factors specific to ALDI’s application and the consideration of densities is:
• The two retail liquor stores and two tavern licences at Whitford City are highly differentiated and can be seen as having a varied but complementary customer base. ALDI’s supermarket and small liquor offering brings another liquor buying experience which expands the choice and convenience for grocery buyers or more generally, visitors to the centre.
• Other licences in the locality with a dedicated packaged liquor service are widely and evenly distributed, largely serving local catchments from neighbourhood shopping centres.
119 At page 30
120 At page 28
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• A large surrounding population with high average income levels and a low presence of vulnerable groups can (and should) support a wider range and density of liquor formats.
When considering the size and characteristics of ALDI’s liquor offering including the small licensed floor area, no chilled products and the screened liquor display area, the effect of the additional licence is small on the overall provision and availability of liquor in the locality. On the other hand, the effect on choice, value and a differentiated product range for the high volume and frequency of shoppers at the Whitford City Shopping Centre is positive.
8.16 The status of Westfield Whitford City as “one of Perth’s premier shopping centres”121 and regional role should indeed justify the grant of a liquor store licence for ALDI Whitford City. “Despite its size, [it] performs the role of a weekly shopping centre for a large primary catchment due to limited supermarket competitions in the area.”122
8.17 Indeed, ALDI Whitford City will be unlike any of the other operations in the Locality. The ALDI Whitford City liquor section will be situated within the supermarket which will, in effect, be self sufficient in that it will provide customers with a very comprehensive one-stop-shop opportunity within the one footprint. Fresh food, other groceries, a wide range of household and garden products and liquor will be available from the one place, with easy access and on-site parking. Furthermore, it is these very attributes of the ALDI Whitford City liquor proposal that are highly demand by the community, as highlighted in the following findings in the PRG report (DOC 8):
8.17.1 “Competitive pricing, convenient location and on-site parking are the most appealing attributes, with just under three-quarters (74%) rated the notion of being within a supermarket highly.”123 This is illustrated in the graph below.
121 DOC 9 at page 29
122 DOC 9 at page 29
123 Page 6
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8.17.2 “…the ALDI attributes of value, award winning products and the ability to buy groceries and liquor requirements in the one store are liked by a significant majority of packaged liquor buyers. Note also that three out of four (75%) respondents liked the notion of a sectioned-off liquor section…”124. This is illustrated in the graph below.
8.17.3 “More than four out of five (88%) of those who currently buy packaged liquor, and just over nine out of ten (92%) of those who buy at least once a month, report that they would be likely to purchase their packaged liquor requirements from the ALDI liquor section if shopping in the proposed Whitford City ALDI store.”125
8.18 It is a highly compelling factor that a representative sample of the public has expressed a clear desire for the ALDI Whitford City liquor service. As addressed earlier on in this PIA, this application has the potential to alter the shopping habits of the community by greatly improving and enhancing the level of convenience, choice and quality in offering. This is supported by the following extract from the PRG report (DOC 8):126
Whilst 58% of respondents buy their packaged liquor requirements “at least half the time” when also shopping for household groceries, just 28% do so “most or all of the time”. The 30% who do so “about half the time” could be a function of lack of opportunity. The question about the potential for greater convenience overleaf suggests that the limiting factor is indeed lack of opportunity rather than lack of preference. The most common option at present is that of a specific “walk in and browse” trip to a liquor store, currently favoured by 46% of respondents “most or all of the time” and 74% “at least half of the shopping occasions.”
Note also, the small proportion (7%) making most of their packaged liquor purchases in a drive through bottle shop. Indeed 84% of packaged alcohol buyers report that they
124 Page 7
125 Page 9
126 Pages 17 and 18
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rarely or never use a drive through bottle shop, suggesting that little of the shopping for packaged alcohol in this region is a spur of the moment decision.
…
Just over four in five (86%) of respondents who buy take-away liquor report that they would find it more convenient to make these purchases if their grocery store included a take-away liquor section within the store itself…
The suggestion is that whilst the dominant shopping pattern is currently tilted towards a special trip to a “walk in and browse” store over the choice to shop in conjunction with the household grocery shopping, there is a likelihood that the shopping in conjunction with the weekly grocery shop would become even more common if the grocery store of choice also had a licenced (sic) packaged liquor section. In short, increased availability of such options would lead to a change in the way that many consumers shop for their packaged alcohol requirements.
(Emphasis added)
8.19 The addition of the ALDI Whitford City liquor service in this Locality is also consistent with its ongoing growth and development.127 Further in this regard, it is relevant to consider the following finding by the Liquor Commission in ALDI Harrisdale:128
The granting of a licence for the selling of packaged liquor in a floor space of 24 square metres would not result in a proliferation of liquor stores within the locality or a proliferation of liquor within the locality. To the contrary, given the nature of products to be sold by the applicant it will add to the diversity of products on offer and allow greater choice for consumers of liquor, thus being consistent with the primary object set out in section 5(1)(c) of the Act.
8.20 This issue of outlet density is also addressed in the accompanying Legal Submissions (DOC 7).
8.21 It is submitted that the licensing authority should be able to easily find that evidence collectively demonstrates that the granting the ALDI Whitford City licence is certainly in the public interest.
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9 Offence, annoyance, disturbance or inconvenience – section 38(4)(c)
9.1 ALDI has carefully considered the impact that may be caused to people who reside or work in the vicinity of the proposed licensed premises in terms of how and in what circumstance the sale and supply of liquor could potentially cause those people offence, annoyance, disturbance or inconvenience.
127 Addressed in section 5 of this PIA
128 [42]
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9.2 It is not considered that there are any high risk factors associated with the ALDI application, for the various reasons referred to throughout this PIA. Despite that conclusion, the applicant is aware of the potential for adverse effects from any sale and supply of liquor and hence proposes to implement the following strategies to “combat offence, disturbance or inconvenience”129 that could potentially occur:
9.2.1 Maintaining a manner of trade which is low risk and low impact.
9.2.2 Managing delivery times and methods in such a way as to minimise potential disturbance to neighbours. The potential of this is highly unlikely given that the shopping centre has been operating at this site since the 1970’s and surrounding residents are well accustomed to the comings and goings of vehicles associated with its operations.
9.2.3 Implementing tried, tested and proven operational policies for overall management and conduct of business.
9.2.4 Monitoring closely unaccompanied juveniles. Controversial liquor products and promotions designed to be attractive to juveniles will not be stocked.
9.2.5 Maintaining a high standard of premises in terms of cleanliness, tidiness and overall quality, to indicate to patrons the operator’s professional approach to management of the business.
9.2.6 Employing only mature and skilled people to run the operation, all of whom will be presented in professional uniform. The staff will all be trained to be able to exhibit a high level of stock knowledge. These features will add an element of responsibility to the functioning and image of the business.
9.3 ALDI’s high level of staff training will ensure that staff at ALDI Whitford City will consistently enforce and uphold the licensee’s policies and philosophies for a compliant business which focuses on integrating with the local community. The applicant values its excellent reputation as an upstanding corporate citizen and employees will be trained to uphold reputation and share in ALDI’s core values.
9.4 The overwhelming majority of respondents in the applicant’s market research (DOC 8) indicated that they do not consider the ALDI liquor service will cause them personal harm, ill-health, offence, disturbance, annoyance, inconvenience or offence. It was revealed that “at least nine out of ten respondents indicated that they would not experience the particular potential negative effects of the liquor licence” as illustrated in the graph below.130
129 PIA Policy
130 At page 8
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9.5 No high risk factors associated with the liquor store proposal in this case have arisen in preparing this PIA. The small risk factor that does exist, as with any licensed premises, will be closely monitored and carefully managed in any event.
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10 Tourism, community or cultural matters – section 38(4)(ca)
10.1 The local community stands to benefit enormously from the introduction of the ALDI liquor service at the ALDI supermarket. The public will enjoy the well-known ALDI liquor products and services in their area, which have been enjoyed by other Australians elsewhere in the country for many years and are starting to be enjoyed in WA.
10.2 West Australians have been hugely enthusiastic about the opening of ALDI in this State. When the first ALDI stores in WA started trading in June 2016, members of the public queued up for hours before the stores opened, as seen in the photographs below.131
131 http://www.watoday.com.au/wa-news/keen-shoppers-brave-cold-for-opening-of-perth-aldi-stores-20160607-gpe297.html
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10.3 In the first six months of trade in Western Australia, more than 3.2 million customers were served at ALDI stores.132 By way of a further example of ALDI’s popularity, the ALDI Cloverdale store transacted a staggering 156,338 customers in just 69 days of trading, which is an average of 2,266 customers per day.133
10.4 Within around six months of opening, ALDI had employed almost 500 people in its WA stores. Its long term plan to open up to 70 stores in this State would lead to 1,200 jobs being created.134
10.5 Further in terms of community benefits135:
The Australian retail liquor sector generated sales of nearly $17 billion in 20161 and an estimated $5.1 billion collected from indirect alcohol taxes and GST revenues2. Retail liquor provides a broad range of flexible employment with more than 47,800 people directly employed across Australia. In total, the 6,451 packaged liquor licences (PLL)4 underpin an industry generating employment of 165,800 Australians when also factoring in the additional indirect jobs5.
The retail liquor sector is proactively committed to responsibly enabling the safe and social enjoyment of alcohol beverages, by providing a wide choice of premium beverages at competitive prices, for people to share with friends and family in the safety of their homes. The sector collaboratively tackles alcohol misuse and discourages underage/secondary supply of alcohol beverages by adopting many voluntary (and effective) measures…
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132 https://www.businessnews.com.au/article/Aldi-flags-14-more-WA-stores-in-2017
133 DOC 18
134 http://www.perthnow.com.au/news/western-australia/aldi-to-open-14-more-stores-in-wa-in-2017/news- story/0de29965fcd9712852ab9b2919908286
135 ALSA-IRI State of the Industry Report, March 2017, at page 4 (DOC 22)
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11 Other matters
Patronage
11.1 ALDI anticipates it will build up and maintain a large and regular customer base, comprised mainly of people living in the Locality. This is supported by the trade area information provided in the DES report (DOC 9), along with the fact that “Whitford City performs the role of a weekly shopping centre for a large primary catchment due to limited supermarket competition in the area.”136
11.2 Other results of the applicant’s market research show that the proposed liquor service at ALDI Whitford City is highly likely to be enormously popular as well. “Just under nine in ten (88%) respondents who ever buy take-away alcohol indicated that if they were shopping in an ALDI store they would at least “quite likely” to also buy their packaged liquor requirements in the liquor section. …more frequent buyers of take- away alcohol (at least once a month) showed heightened interest (92%) in buying from the ALDI liquor section.”137
11.3 In this regard, it is highlighted that the licensing authority is entitled to take into account the popularity of similar services provided at other locations when assessing whether the proposed services will be in the public interest at this particular location.138
11.4 The proposed liquor service will principally cater for all of the reasonable liquor shopping needs of ALDI supermarket customers. The liquor store is designed to provide premium shopping convenience in terms of the following:139
11.4.1 One-stop-shopping.
11.4.2 One-transaction-shopping.
11.4.3 One-stop-ALDI-shopping.
11.4.4 One-trolley-shopping.
Security and crime prevention 11.5 ALDI’s considerable retailing experience, including selling liquor products, has provided the organisation with the ability to manage security well such that crime associated with ALDI stores is kept very low.
136 DOC 9 at page 29
137 DOC 8 at page 23
138 Woolworths Ltd v Director of Liquor Licensing [2013] WASCA 227 [77]
139 This aspect is addressed in the detail in the accompanying Legal Submissions (DOC 7)
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11.6 The quality of the premises, both inside and outside, and the standard of supervision by staff will help make the public feel welcome and safe but any would-be criminals or disorderly persons uncomfortable.
11.7 Crime prevention through environmental design is contemplated by the PIA Policy and the applicant has had regard to this issue. Importantly, the liquor store will have no external access as it will be entirely confined and secured within the ALDI supermarket.
11.8 As has already been made clear, the following will apply at the ALDI Whitford City store:
11.8.1 Security cameras both inside the premises and outside around the exterior, further details of which are provided below. This includes CCTV over the licensed area.
11.8.2 Secure locking systems for after hours.
11.8.3 A high level of staff training which includes how to deal with incidents that are or could potentially become criminal or unsafe.
11.8.4 Maintaining a rigid enforcement of harm minimisation principles and policies. These will include, for example the “ID Under 25” policy, staff training, participation in the local liquor accord, notifying police of potential criminal behaviour and keeping in contact with police.
11.8.5 Clear and obvious signage. The new premises will be bright, modern and attractive.
11.8.6 Limited public access and egress via one point only, from within the supermarket under the constant vigil of the cashiers. This will ensure a high level of staff surveillance from inside the store and will also inhibit would-be criminals by restricting the ease of a ‘get-away’.
11.9 The applicant’s responsible approach to its business and desire and proven capacity to provide a service that is popular with the local community will help ensure an approach to management that invokes safety, convenience and no crime.
11.10 The design for the new store ensures the licensee will have the ability to maintain adequate controls over the licensed operation by being able to properly monitor the whole premises whilst simultaneously operating the business in a manner which meets the requirements of the public.
11.11 Included in the Applicant’s Case is a copy of the applicant’s confidential Security Layout plan, illustrating the general position and fit-out of the items described above (DOC 13 - private and confidential).
11.12 An advanced security and surveillance system will be installed, based on the model which has been successfully operating in the eastern states. The applicant’s advanced system includes the following features:
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11.12.1 An Access Control System as follows:
(a) 24 hour entry system to the store including interface with the security system.
(b) A tamper switch will be applied to set off the alarm in the event of unauthorised removal of the panel front covers.
11.12.2 CCTV system – 24 hour surveillance of the licensed area and entry and exits to the store, which will include the following:
(a) 11 active cameras will provide 24 hour surveillance with the digital video recorder.
(b) Two full body cameras located within the licensed area, one facing the checkout and another one facing the liquor shelf.
(c) The digital video recorder will be configured for motion detection to allow efficient review of any incidents.
(d) An appropriately sized hard disk will be installed to allow images to be retained on the digital video recorder for at least two weeks without greatly compromising recording quality.
(e) The CCTV flat panel monitor will be located in the office to provide real time monitoring to the store staff of the retail floor including the licensed area. This will include a play-back function.
11.12.3 The security system equipment will include the following:
(a) Passive Infra-Red Motion Detectors.
(b) Break glass detectors.
(c) Magnetic reed switches.
(d) Vibration detector.
(e) External strobe and siren.
(f) Security flashing lights and horns.
11.12.4 A back to base monitoring system which will raise a security alarm if the security system is armed and there is a breach. The back to base alarm will then send a patrol as well as notifying the manager, which will also activate an external strobe light and external siren.
11.13 The design and installation of the electronic security, access control and audible system shall comply with the requirements of all relevant standards and codes including but not limited to the following:
11.13.1 Australian Standards AS/NZS 3000.
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11.13.2 State Service and Installation Rules.
11.13.3 Building Code of Australia.
11.13.4 Local and other authority services and installation rules.
11.13.5 Australian Communications Authority.
11.13.6 Work Cover Authority.
11.13.7 Other relevant Australian standards.
11.14 Of real significance is the fact that the ALDI liquor area design and layout facilitates an advanced level of security and surveillance. The store’s design will make it extremely difficult for juveniles, drunk people or would-be thieves to gain access to the liquor area and go undetected. This will be achieved by virtue of the following factors:
11.14.1 Customers will be required to walk well into the supermarket footprint under clear view of a combination of various cameras, staff monitoring them and other customers observing.
11.14.2 Customers will be required to walk through the manned and monitored checkouts in order to exit the store. There will be no quick get-away option.
11.14.3 The simple small layout of the liquor area will also ensure that it is not in any way attractive for juveniles, drunk people or would-be criminals nor a temptation for impulse procurement.
11.15 This ALDI concept has proven to be successful in other states and locally in maintaining harm minimisation and risk management.
12 Conclusion
12.1 ALDI has provided a thorough well researched, detailed proposal which includes all of the necessary formalities as well as a large volume of supporting information and evidence from the community, all of which is highly supportive of the grant of the liquor store licence for a very small floor area in the Whitford City store.
12.2 The particulars of the ALDI Whitford City licence application have been comprehensively set out and evaluated with reference to all relevant aspects of the PIA Policy. In particular, this PIA addresses the following key points:
12.2.1 All aspects of the public interest factors in full measure.
12.2.2 Relevant at risk groups.
12.2.3 Both positive and negative elements associated with the Locality and the application generally.
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12.3 Of the few small risks that exist in this case, several valuable risk minimising measures have been proposed. On the other hand, the very many positive factors have a great deal of weight.
12.4 One of the applicant’s independent experts has concluded that “the granting of a conditional liquor store licence to the proposed ALDI store at Whitford City meets a need in the area and will have little or no detrimental impacts on the community”.140
12.5 The ALDI Whitford City supermarket, with a liquor service, will provide an important and valued service to the community. The evidence and findings in the DES report (DOC 9) and the PRG report (DOC 8) that have been cited in this PIA support this proposition.
12.6 It is submitted that the grant of the ALDI Whitford City application will cater for the requirements of modern consumers. As detailed throughout this PIA, the public has expressed overwhelming support for the ALDI liquor service at its Whitford City supermarket.141
12.7 Further aspects of the public interest and the legal issues associated with the application are addressed in the applicant’s detailed Legal Submissions (DOC 7).
Dated 19 September 2019
______Lavan Lawyers for the applicant Reference: Jessica Patterson [email protected] T: (08) 9288 6946 www.lavan.com.au
140 DOC 9 at page 30/para 91
141 DOC 8
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