Industry Analysis & Industry Trends
The Supermarkets and Grocery Stores industry is one of the most fiercely competitive in Australia. The rapid growth of German-owned ALDI over the past five years has significantly altered the industry. ALDI has grown in popularity over the past five years, partly due to its discount private-label products. This has forced the two established industry giants, Woolworths and Coles, to cut prices and expand their own range of private-label products. Changing consumer sentiment and shopping preferences have also influenced the industry's trading conditions. Industry revenue is projected to grow by 3.8% annualised over the five years through 2015-16, to reach $88.1 billion. This includes forecast growth of 2.5% in 2015-16... purchase to read more
Industry Report - Industry Investment Chapter
The Supermarkets and Grocery Stores industry is moderately capital-intensive. For every dollar spent on capital, stores spend an estimated $6.79 on wages. While advances in technology have made the recording of sale items easier and faster, manual labour is still required in many aspects of supermarket operations. Consequently, labour remains a substantial portion of daily operating costs. Staff are required to undertake a variety of tasks according to their position descriptions. These include assisting customers with their purchases, processing transactions and restocking display shelves.
Capital expenditure for the industry comes in the form of fixtures and fittings, such as display shelving and cash registers... purchase to read more