Woolworths is losing the battle of the supermarkets, according to the latest UBS Supermarket Supplier Survey. The UBS found that Woolies had the poorest quality fresh-food offerings and yet the highest prices.
UBS surveyed 1000 Aussie shoppers about their spending habits, intentions and preferences in relation to the major supermarkets. The survey found that Woolworths scored just 5.7 out of 10, the lowest since the USB surveys tared back in 2007. Coles, on the other hand, was the highest it’s ever been with a 7.1 out of 10.
A note to UBS’s clients said: “We believe the results from the 18th UBS Supplier Survey clearly highlight Woolworths is a business that (for now) has lost its competitive advantage to Coles.
“And when the number one player in the market is under pressure, major changes to its strategy can cause major disruptions to the market. We think Woolworths needs to lift internal morale and take market leadership in terms of both value and service, which takes time and costs money.
“There continues to be strong support from shoppers for a high-quality fresh offering, with our respondents ranking Aldi best, then IGA (independent chains), Coles and Woolworths last.
“Finally, shoppers are generally not loyal and have a growing propensity to cross shop, driven by greater choice and improved technology.”
These findings come after Woolies’ CEO Grant O’Brian quit, the rise of ALDI and a CHOICE survey which found that Coles was the best for Country of Origin labelling. It looks like everything is going down hill for Woolworths.
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