Report: ALDI Still Killing It In Aussie Supermarket War

Report: ALDI Still Killing It In Aussie Supermarket War

ALDI’s share of Australia’s $90 billion supermarket budget continues to grow at the expense of Coles and Woolies a new report by research firm Roy Morgan has revealed.

B&T Magazine
Posted by B&T Magazine

The research shows Australia’s grocery buyers spent $90.3 billion at supermarkets during the 12 months to March 2017. Of that, $32.2 billion was spent at Woolworths (35.7 per cent of the market, down from 36.3 per cent in the year to September 2016) and $30 billion at Coles (33.2 percent, unchanged).

ALDI claimed $11.9 billion of grocery buyers’ expenditure during the year (13.2 per cent, up from 12.5 per cent), stretching its lead over IGA which fell to $8.4 billion (9.3 per cent, down from 9.8 percent).

The combined share of other supermarkets rose from 8.1 percent to 8.6 percent, or $7.8 billion.

Shares of the $90.3 billion spent at Supermarkets in 12 months to March 2017

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Commenting on the report, Roy Morgan CEO Michele Levine said: “With over $90 billion a year spent at supermarkets, every 0.1 percentage point change in market share is equal to nearly a hundred million dollars in gross revenue lost or gained.

“With German discount chain Lidl and its big box ‘hypermarket’ parent Kaufland, as well as Amazon Fresh, all rumoured to be setting up shop in Australia this year, supermarkets need to a firm grasp of their market shares, and strengths and weakness in different grocery categories and between different types of consumers.

“The latest research shows ALDI has again hit a new high and cemented its third spot ahead of IGA. Meanwhile Coles in now just 2.5 percentage points behind Woolworths, having narrowed the gap from eight percent over the last few years.

“ALDI’s growth in market share reflects its continued strong performance in delivering customer satisfaction. In 2016, ALDI won its fourth consecutive Roy Morgan Customer Satisfaction Award for Supermarket of the Year. The latest data shows Aldi retains the lead among the Big Four supermarket chains, satisfying over 90 per cent of its customers overall, with—perhaps surprisingly—particular strength in meat and fresh fruit and vegetables, as well as the general merchandise which is a distinguishing feature against competitors.

“Also, as Roy Morgan revealed in March, ALDI is now the country’s most-read supermarket catalogue, with 5.1 million Australians having a look-see about its special offers in an average week. With industry-leading satisfaction and catalogue reach, we would expect Aldi’s market share to continue to climb. Coles, Woolworths and IGA, as well as smaller chains, will need to work to safeguard their shares against an ascendant Aldi and any new game-changing arrivals.”