Industry Analysis & Industry Trends
Strong competition from the major supermarkets has created unfavourable trading conditions for the Delicatessens industry over the past five years. Low prices across numerous product lines in the major supermarkets have enticed consumers away from specialised retailers, hurting industry demand. However, the rising premiumisation trend among some consumers has buoyed the industry over same period. Industry revenue is forecast to grow at an annualised 2.1% over the five years through 2015-16 to reach $900.5 million. However, a 7.1% revenue decline in 2010-11 has skewed this growth figure. Industry revenue is forecast to grow at a modest 1.4% in 2015-16.
Supermarkets and grocery stores are the largest competitive threat to the industry... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Delicatessens industry displays a low level of market share concentration. The industry is characterised by many highly diverse operators. Most delicatessens are independently owned and operated and target a small geographic area, such as the local neighbourhood. Consequently, it is difficult for any individual delicatessen to build the economies of scale required to expand nationally. This has made the industry highly susceptible to competition from other retailers, particularly the major supermarkets, Woolworths and Coles.
Over the past five years, the industry's market share concentration has remained low. Industry operators have struggled to compete against supermarkets that are also offering an increasing range of deli-style products... purchase to read more