Overview

Counting the cost: Profit margins have declined due to intense price competition

IBISWorld’s Supermarkets and Grocery Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

The Supermarkets and Grocery Stores industry is one of the most fiercely competitive industries in Australia. The rapid growth of ALDI over the past five years has significantly altered the industry. ALDI has grown in popularity, largely due to its discount private-label products. The rise of ALDI has forced the two established industry giants, Woolworths and Coles, to cut prices and expand their private-label product ranges. Smaller players, such as Foodworks, have struggled to compete in an increasingly price-intense industry. In addition, industry-wide profit margins have fallen over the past five years as players reduced prices and accepted lower margins to stay competitive. Industry revenue is projected to grow by an annualised 4.2%...

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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 $7.14 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 including 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. Ove..

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Industry Products

What is the Supermarkets and Grocery Stores Industry?

Industry players primarily retail groceries. Supermarkets and grocery stores retail a range of groceries and food products, including fruit and vegetables, bread, cigarettes, canned goods, toiletries, dairy goods, delicatessen items and cleaning goods. Specialist retailers, niche retailers and convenience stores are excluded from the industry.

Industry Products
Dry and packaged foods
Bread and bakery products
Meat products
Milk and other dairy products
Fresh fruit and vegetables
Beverages
Cigarettes and other general merchandise
Toiletries and health products
Industry Activities
Operating supermarkets
Operating grocery stores

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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