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%... 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 $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... purchase to read more