Industry Analysis & Industry Trends
The Supermarket and Grocery Stores industry is one of the most fiercely competitive industries in Australia. The entry and rapid growth of German-owned ALDI, which almost exclusively sells private-label products at discounted prices, has caused a massive shift in the industry. Supermarket shelves have changed significantly over the past five years, as the two giants of the industry – Woolworths and Coles – scrambled to compete with ALDI's low prices. Changing consumer sentiment and preferences have also influenced trading conditions across the industry. Industry revenue is projected to grow by 2.3% annualised over the five years through 2014-15, to reach $91.6 billion. This includes forecast growth of 2.6% in 2014-15... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Supermarket and Grocery Stores industry is one of the most concentrated industries in Australia. The top four players hold under 90.0% of the market. Acquisition activity undertaken by Woolworths and Coles has contributed to increasing concentration since the mid-1970s. These two players alone account for more than 70.0% market share.
The entry of German-owned ALDI has increased industry concentration. ALDI operates as a low-cost player that stocks a limited number of popular grocery items. Consumers have responded positively to this model, contributing to ALDI's rapid growth over the past five years. ALDI holds almost 7.0% of the market, an incredible achievement for a company that launched a little over a decade ago... purchase to read more