Australia’s $100bn-plus supermarket industry continues to be dominated by Woolworths and Coles, according to new research by Roy Morgan.
Both Woolworths (32.2%) and Aldi (12.1%) grew their respective market shares by 0.8% during the course of 2017, while Coles (28.8%) saw its stake grow by just 0.1%.
The three chains between them hold 73.1% of Australia’s entire supermarket industry.
Greater competition can be seen in the fresh food segment. All of the major supermarkets have a lower market share of the fresh food market than their overall grocery market share (Woolworths 26.7%, Coles 24.5% and Aldi 9.0%).
This is a result of the specialty retailers that compete in the fresh food segment such as bread shops, fruit shops, butchers and seafood retailers.
Norman Morris, Industry Communications Director, Roy Morgan commented: “The recent announcement by Wesfarmers to demerge Coles is likely to result in increased pressure in this highly competitive $100b plus grocery market. When Coles becomes listed on the ASX, it is likely to lead to increased analysis and pressure on their financial results and the obvious comparison with Woolworths
“Woolworths currently appears to have an edge over Coles but both are facing increasing competition from Aldi and the arrival of others including Kaufland and Lidl that will put even more pressure on this market.
“Lack of loyalty among supermarket shoppers that we have seen in this release presents both a major opportunity for current players to gain customers but also a good environment for new entrants to build a customer base like we have seen with Aldi.”
Roy Morgan’s Supermarket & Fresh Food Currency Report covers all food retailers, including products purchased and dollars spent.