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 Analysis Chapter
The industry landscape has changed immensely over the past five years. The rapid growth of ALDI and the increasing popularity of private-label products have altered the playing field. These changing dynamics have sparked a price war between the industry’s two largest companies, Woolworths and Coles. Both have chased market share by slashing the prices of goods such as household basics. Despite lower product prices, industry revenue has remained strong, and is projected to post annualised growth of 3.8% over the five years through 2015-16. This includes forecast growth of 2.5% in 2015-16, to reach $88.1 billion.
Woolworths and Coles have opted to reduce prices as a competitive strategy, going against the trend of overseas supermarkets to compete through product differentiation... purchase to read more