Report: ALDI Set To Kick More Butt With Woolies And IGA The Biggest Losers
If the Australian grocery war wasn’t already at near boiling point, things are only going to get hotter according to a new report by analysts from merchant bank UBS.
According to the UBS report, ALDI’s set to snare $450 million worth of business away from struggling rival Woolies in the coming three years.
The report says ALDI is now Australia’s most profitable grocery chain and is best placed to win the inevitable cost-cutting war. It also noted that the Metcash-owned IGA chain would take a kicking from ALDI’s cost-cutting and aggressive expansion. The report noted that Coles would be the chain least impacted by ALDI.
For its initial 10 years in Australia, the German-owned grocer has concentrated on the east coast states; however, ALDI now has aggressive plans to move into South Australia and WA.
However, any grocery war between the four major players doesn’t necessarily mean good news for agencies. Woolworths recently moved its creative to M&C Saatchi and media to OMD.
A recent Nielsen report showed that in the 12 months to April 2016, both Coles and Woolies media spend dropped sharply. Read the report here.
And it appears all bad news for Woolworths. Not only is it losing share to ALDI, but the UBS report notes its customers are also off to IGA too.
“Coles is doing the best job competing against ALDI, and we expect it to be least impacted over the next three years,” the report’s authors noted.
UBS said ALDI currently had about $A7 billion turnover in Australia but that should increase to $A10.6 billion by 2020 as its rollout in other states takes affect.
“ALDI is now the most profitable major supermarket chain in Australia, generating a profit before tax margin of about 5.2 per cent in 2013, and is, in our view best positioned to win a price war,” the report noted.
Please login with linkedin to comment
Advertising Standards Bureau Jamie Oliver Thinktank Social UM MelbourneLatest News
Coopers Release New & Limited Edition Hazy IPA Via TABOO
Looking to entice a more progressive audience into the Coopers family, Australia’s largest independent brewery has released a limited edition Hazy IPA. The product has launched via a national OOH and digital campaign in collaboration with Melbourne creative agency, TABOO. TABOO is behind the exciting new illustrative can design, inspired by the Australian landscape. The […]
Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign
Ben & Jerry’s has unveiled their latest limited-edition flavour: Unfudge our Future, to urge Australia’s leaders to tackle climate change by making fossil fuels history. The launch aligns with the Federal Government’s preparation of a history-making economic reboot in the upcoming October Budget, with Ben & Jerry’s joining forces with 350.org Australia and the Climate […]
Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign
BRITA Australia is today proud to reveal its latest national campaign, ‘Get Your Jugs Out’, starring Australian comedian, Celeste Barber. The quirky campaign encourages Australians to make the switch from bottled water to great tasting filtered tap water, using a BRITA filter jug at home, with the creative brought to life with Celeste’s cheeky, yet relatable sense of humour.
Enero Posts Net Revenue Increase Of 4.9%
Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.
Apple Accused Of Taking Traffic Away From Publishers
Apple accused of taking traffic away from publishers. Zuckerberg just thankful the heat's off him for a change.
Woolies Doubles Down On Print Catalogues After Coles Pulls The Plug
In top news for papier-mâché, home-made pirate hats & kitty litter trays, Woolies says printed catalogue to continue.
Online Retailer THE ICONIC Marks Play Into Sportswear In New Spot Via Thinkerbell
Has lockdown left your midrift wobbling like the jelly/custard trolley at yum cha? Instantly deflate with this news.
Tradie Scrubs Up Alright With Inspired Unemployed TVCs For New Body Wash Range Via The Incubator
Tradie continues association with comedy duo 'Inspired Unemployed' which, you'd assume, negates their unemployed status.
“Eau De Piss!” Victoria Bitter Unveils New Men’s Fragrance & Apparently It’s Not A Joke Either
You may not want to drink it, but you can smell of it, as VB launches fragrance with a hint of urinal deodoriser blocks.
Wednesday TV Wrap: Locklan Gilbert Makes Bold Bachelor Debut
10's The Bachelor is back and so is the B&T office's Bachie sweepstakes. The winner set to claim the entire $5.80 booty.
Bumbles Launches OOH Campaign Featuring Local Influencers
B&T's editor is a huge fan of Bumble & can count three drinks to the face & a pepper spray in his last four dates alone.
You Can Now Limit Who Can Reply To You On Twitter
Twitter is saying ‘bye to the reply guys’, allowing users to control who can reply to their Tweets. ‘Reply guys’ have long been an issue on the social media app, where users (often anonymous) frequently comment on posts in an annoying, condescending or otherwise unsolicited manner. Twitter first put these users on notice in May […]
The Virtual Conference Network Launches In Australia
The Virtual Conference Network, an Australian-founded disruptive alternative to video conferencing, has today launched to provide risk mitigation, improved flexibility, new post-event revenue streams, and optimal cost-effectiveness to conference organisers, business leaders and peak bodies. With over 20 years of first-hand experience with the high-risk and costly ways of delivering traditional conferences, co-founders Alex Paine […]
Swapping Impressions For Attention: How We Can Fix Online Advertising
Debate around banner ads has gone on since the internet was invented in 1664 by Sir Ian Ternet & continues to this day.
Dentsu Queensland Boosts Executive Team With New Appointment
Debunking the myth that people in the Queensland office all wear safari suits, comes this image quashing the scuttlebut.
Seven Renews Farmer Wants A Wife For 2021
Single? Always wanted to dag a sheep or castrate a bull? Well, time to get prepping for 2021's Farmer Wants A Wife.
Genea Fertility Appoints CHE Proximity As Creative & Media Agency
Is there anything more precious than the miracle of human life? Apart from when they become whingey, shitty teenagers.
The Monkeys Creates Major Audi Australia Q Campaign, With Additional Spot For Victorians
Considered a ponytail or Viagra recently? Well, confirm you're in the midst of a midlife crisis with this new Audi work.
TV Upfronts 2021: What Media Buyers Want & How They’ll Be Buying Differently
Media buyers predict TV's upcoming upfronts. Although one thing's for certain, you can forget about the massive piss-up.
Media Must Cater To Multicultural Australia, Says Punkee’s Tahlia Pritchard
B&T chats with Punkee’s Tahlia Pritchard, yet strangely The Sex Pistols' 'Never Mind the Bollocks' gets a mention.
UnLtd Launches #GotchaMelbourne To Support Melbourne Ad Industry
Melbourne's ad industry is doing it tough, with news today that local coke dealers have even had to apply for JobKeeper.
Snickers Roasts Lockdown Life In Witty New Work
This new Snickers advertisement is so good, B&T says it will help you work, rest and play.
Brookvale Union Invites Consumers To Attain A ‘State Of Mouth’ In Ad Via Clemenger BBDO Sydney
B&T would like to thank Brookvale Union for sending product to the office. We can announce three unwanted pregnancies.
Billie Eilish Champions The Gen Zs In Stunning New Work For German Telco
Billie Eilish confirms that not since Mrs Slocombe and Sigmund The Sea Monster has green hair been so effortlessly cool.
Medallia Appoints Heather Paterson As ANZ Country Manager
Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]
Spikes Asia Brings Spikes Awards Forward To February 2021
Spikes Asia has moved to February, meaning it will coincide with Valentine's Day & possibly the NRL Nines tournament.
Finalists In Round One Of 2020 Australian Effie Awards Announced
Enter this year's Effies? Did it involve an awful afternoon printing at Officeworks? Find out if it was worth it here.
IAS And Channel Factory ‘Channel Science’
Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized. More than ever before, advertisers are searching for ways to streamline their media buying and improve […]
WPP AUNZ Launches Secrets & Lies Podcast Series
WPP AUNZ launches Secrets & Lies podcast series which, as you'll learn here, could no longer be considered a secret.
Google Presses Play On Programmatic Audio
If CV-19's given us anything, it's more podcasts than you could listen to in 1000 lifetimes. Monetise yours with this.
