Yahoo Finance Dick Smith closes Australian food business, blames Aldi
Dick Smith has announced he will shelve his Australian food business, blaming the meteoric rise of “extreme capitalism” and the success of Aldi supermarkets.
Dick Smith Foods will be phased out after 19 years in business and $480 million in sales.
“At the moment Dick Smith Foods is profitable but it’s obvious in two years it will not be profitable,” the 74-year-old, holding back tears, said in Sydney on Thursday.
“In two years’ time we will go out of business, so I’m closing it down now when times are good.
“It’s a decision forced on me because most people just want the cheapest prices, and the cheapest prices will always come from overseas.”
The veteran retailer, who has previously blamed Aldi’s aggressively low prices for the dumping of well-known Aussie products, again took aim at the supermarket giant in an announcement on his Facebook page.
“It’s amazing that foreign-owned Aldi is now our most trusted brand, whereas Coles, Woolworths, and Metcash (IGA) have done everything they can to try and keep our products on the shelves, are not as respected,” he wrote.
“It looks as if there is nothing we can do about this. It is simply modern “extreme capitalism”. That is the reason I am closing Dick Smith Foods.”
He said he now holds grave concerns for the future of Australia’s children and grandchildren.
