Ratings agency Moody’s has released a report saying that big supermarket players, Woolworths, Coles and IGA, will continue to lose market share as ALDI expands into new markets.
This report deals another blow to the supermarket powerhouse after ALDI was named supermarket of the year at Roy Morgan Research Customer Satisfaction Awards and German supermarket company LIDL is rumoured to be making its debut in Australia.
“The big two, which together control over 60 per cent of the market, according to our estimates, are being challenged by the aggressive expansion of Aldi, whose market share on the populous east coast of Australia exceeds 11 per cent, as well as the potential entry of new market players,” Ian Chitterer, a Moody’s vice president and senior analyst said in the report.
“Focusing on a strategy of offering high quality private-label products to low-to-middle income consumers, Aldi — which first emerged in Australia in 2001 — has gained acceptance among consumers, and plans to expand rapidly in South and Western Australia where it is not currently operating.
“These factors will shake up the strong duopoly structure of Australia’s grocery market,” Moody’s said in a report on Thursday.
“As such, we expect the market share and profit margins of the two incumbents, but Woolworths in particular, to remain under pressure over the next 24 months.”
Aldi is set to open 60 new stores over the next 12 months, increasing its store footprint by 16 per cent.
Please login with linkedin to commentselfies
New Zealand’s Anchor Dairy has switched strategies for its 2020 Christmas campaign, with the company this year drawing attention to the need to give during the festive season. The Fonterra-owned company is encouraging Kiwis to fundraise for the New Zealand Food Network, following the release of research that showed one in five people risk going […]
The ‘It’s Your Energy’ campaign, delivered via Icon Agency, encourages Victorians to take advantage of recent energy reforms and ensure they’re getting the best deal possible. Essential Services Commission, the regulatory body for Victorian energy and gas, water, local government, and transport sectors, has engaged Icon Agency to develop an integrated communications campaign to help […]
In the insurance company’s latest campaign, NRMA Sleeper depicts a road trip, like any other, except everyone in the car is asleep, even the driver. Yet they arrive unscathed. According to production company FINCH, which is behind the work, the spot dreams up a world where cars drive themselves to remind us that until they […]
Children’s cancer charity, Bailey’s Day, has teamed up with full-service international communications agency Noisy Beast to launch ‘The Big-Hearted Bear’ campaign, voiced by Channel 9’s Livinia Nixon. Each year, Bailey’s Day hosts a charity golf day, auction and luncheon to raise funds for children’s cancer research at Monash Children’s Hospital, but with the COVID-19 pandemic, […]