Do shoppers have an appetite for premium grocers?

DAVID_JONES_FOOD_MALVERN_CENTRALThe $102 billion food and grocery sector is a tough market. Just ask Coles, who reported a third quarter sales increase of just 1.9 per cent in late April. Woolworths reported slightly better at 4.9 per cent. 

The entry of German discounter Aldi and a decade of ‘price wars’ has produced a price-conscious consumer, who regularly switches between supermarket brands seeking the lowest price.

As Kaufland gears up for its entry into the Australian market, the one thing we can be sure of is that things are going to get tougher for incumbent players.

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