Woolworths in a strong position to take on Kaufland
Woolworths remains Australia’s top grocery retailer, increasing its share of the market to 34 per cent in 2018, up 1.4ppts, while a newly independent Coles now has a share of 27.6 per cent of the total grocery market, down 1.6ppts on a year ago.
Aldi grew its grocery market share to 11.4 per cent in 2018, up 0.5ppts from a year ago, while Other Supermarkets outside the ‘big four’ such as Foodland and Foodworks have increased their share to 9.1 per cent, up 1.2ppts. IGA’s grocery share was down 0.4ppts to 7.1 per cent.
Woolworths’ dominance in key fresh food categories has helped its strong lead. The retailer holds the largest market share in dollar terms for fresh meat, fresh deli, fresh bread and fresh fruit and vegetables ahead of Coles, Aldi and IGA supermarkets. The big two currently dominate Australia’s fresh food markets holding over 50 per cent of each of the fresh food markets.
Source: Roy Morgan Single Source. Base: Grocery Buyers 14+, Jan-Dec 2017, n=12,312, Jan-Dec 2018, n=12,310.
Michele Levine, Roy Morgan CEO, said Woolworths’ impressive performance places it in a strong position to deal with the entry of German hypermarket Kaufland into Australia’s more than $100 billion grocery market.
“The demerger of Coles Group from industrial conglomerate Wesfarmers in the December quarter of 2018 means Australia’s second largest supermarket chain now has the opportunity to refocus on its core business ahead of the imminent arrival of German retailer Kaufland,” Levine said.
Kaufland is following in the footsteps of fellow German retailer Aldi with plans to open six hypermarkets in Victoria over the next two years and more stores Australia-wide in the future.
Levine also expects the anticipated rollout of ‘Amazon Fresh’ in the Australian grocery market in the near future to further disrupt the market. The online retail giant launched a food and grocery segment (excluding fresh food) late last year.
This story first appeared on sister site, Inside FMCG.
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