DEMOLITION of the former Home Timber and Hardware store in Australind has started to make way for German retailer Aldi.
In October 2014, Aldi announced it would be entering the West Australian market with stores planned for a number of metropolitan and regional locations.
The new store at the Australind Shopping Centre will take Aldi's total investment in Australia to close to $4 billion.
DAD Realty Australind real estate agent Debbie Panetta said the new supermarket would give the area a boost.
"Competition is always good for the area," Mrs Panetta said.
"It will draw more people to the area and you will probably see people coming from Bunbury to shop there.
"I've been to the Aldi stores over east and they are magnificent."
Last year Bunbury Chamber of Commerce and Industries chief executive Ray Philp said the retailer's decision to come to the South West would be a boost to the local economy.
"Aldi's decision shows great confidence in the growth of the South West," he said.
"The business community will benefit through opportunities to construct and service the new supermarket.
"Any opportunity to grow jobs and attract new people into the region has a significant flow on to other parts of the local economy."
The first Aldi stores in Western Australia are expected to be open in early 2016.