Study: Woolies Still Our Number One Grocer (But You Can Forget About Customer Loyalty)

FILE PHOTO: Shoppers walk into a Woolworths supermarket in Sydney, Australia August 22, 2017. REUTERS/Jason Reed
SHARE
THIS



The latest results from Roy Morgan show that in the 12 months to December 2017, Woolworths had 32.2 per cent of Australia’s total grocery market (including fresh food) – an increase of 0.8 per cent over its 2016 result.

Coles Group achieved 28.8 per cent share – up by only 0.1 per cent point.

These results are from the Roy Morgan Single Source survey of over 50,000 people per annum, including over 12,000 grocery buyers.

There is clearly a lack of loyalty when it comes to supermarket shopping, with very few customers only shopping at one supermarket.

An example of this is that although 72.7 per cent of grocery buyers shop at Woolworths, a much lower eight per cent shop only at Woolworths.

It is a similar situation with Coles shoppers, where 70 per cent shop but only 6.6 per cent shop exclusively. The store overlap in shoppers of the big two is very large with over half of them shopping at both Coles and Woolworths.

7537-c1

The two best performers in 2017 for gaining share in the total grocery market were ALDI, up 0.8 per cent points to 12.1 per cent and Woolworths up 0.8 per cent points to 32.2per cent.

This now makes the combined market share of Woolworths, Coles and ALDI 73.1 per cent, up 1.7 per centpoints over last year. IGA appears to be struggling in fourth place on 7.4 per cent, down 1.1 per centpoints for the year.

Non-supermarket food retailers such as butchers, fruit shops, markets, and convenience stores currently have 11.8 per cent market share, but are showing some weakness over the last year, being down by a combined 0.8per cent points.

All of the major supermarkets have a lower market share of the fresh food market than their overall grocery market share. This is a result of the speciality retailers that compete in the fresh food segment such as bread shops, fruit shops, butchers, seafood retailers etc.

The best performers in this segment are the non-supermarket group with 30.2 per cent share, followed by Woolworths (26.7 per cent), Coles (24.5 per cent) and ALDI (nine per cent).

7537-c2

Commenting on the study, Roy Morgan’s industry communications Director, Norman Morris, said: “The recent announcement by Wesfarmers to demerge Coles is likely to result in increased pressure in this highly competitive $100b plus grocery market.

“When Coles becomes listed on the ASX, it is likely to lead to increased analysis and pressure on their financial results and the obvious comparison with Woolworths.

“Woolworths currently appears to have an edge over Coles, but both are facing increasing competition from Aldi and the arrival of others including Kaufland and Lidl that will put even more pressure on this market.

“Lack of loyalty among supermarket shoppers that we have seen in this release presents both a major opportunity for current players to gain customers but also a good environment for new entrants to build a customer base like we have seen with Aldi.

“The current aim of the major supermarkets to be positioned as being strong in ‘fresh food’ is a result of it being seen as an area of major growth potential. This market is very significant, with an estimated annual turnover of over $40 billion or nearly 40 per cent of the total grocery market.

“The smaller specialist retailers or non-supermarkets mainly operate in the fresh food area and include fruit shops, butchers, bread shops etc.  Together they currently hold a 30.2 per cent of the fresh food market or 11.8 per cent of the total grocery segment but appear to be losing market share to the majors,” he said.

Please login with linkedin to comment

Aldi IGA Roy Morgan Wesfarmers Woolworths

Latest News

Aussie Success Story Afterpay Unveils New Brand Identity
  • Marketing

Aussie Success Story Afterpay Unveils New Brand Identity

Aussie retail payments platform Afterpay has launched a new global look, feel and positioning with a fresh brand identity. Founded out of Bondi, Sydney, Australia five years ago, Afterpay has skyrocketed to infinite heights, with almost 10 million customers and 55,000-plus merchants now using the platform globally across Australia, US, UK (where it is called […]

Women in Media’s Doris Li: “Listen To Your Heart And Go For It, Then Settle For Extraordinary”
  • Media

Women in Media’s Doris Li: “Listen To Your Heart And Go For It, Then Settle For Extraordinary”

How Communications’ China marketing director, Doris Li, believes ad-land professionals must be courageous enough “to be abnormal”, and listen to their hearts, to be fearless in times of change. During this year’s B&T Women in Media Awards, presented by Bauer Media, we’ll be recognising exceptional people who have achieved success in their professional arenas, celebrating […]

by B&T Magazine

B&T Magazine
Study: New Business Wins Still Resilient, But Creative Finding It Tougher Going Than Media
  • Advertising
  • Media

Study: New Business Wins Still Resilient, But Creative Finding It Tougher Going Than Media

The holding companies might be losing as much as 23 per cent of their revenue year-on-year, but new business has remained relatively resilient through 2020, the lastest research from R3 has revealed. In the first half of 2020 total new business revenue decreased 10 per cent globally – but creative agencies are having to find […]

by B&T Magazine

B&T Magazine
I’m Not Loving ‘Karens’, For What They Highlight About Our Society
  • Opinion

I’m Not Loving ‘Karens’, For What They Highlight About Our Society

In this guest post, the CEO of PR/comms agency Extollo, Katy Denis, examines the social phenomenon of our time – the entitled ‘Karens’ amongst us & why they can be such a danger… Until last week, I had no idea who or what a “Karen” is. Thanks to (and I use that term very lightly, […]

Opinion

by B&T Magazine

B&T Magazine
The Mint Partners Wins Pernod Ricard, Cemoy & Little National
  • Advertising

The Mint Partners Wins Pernod Ricard, Cemoy & Little National

Independent communications consultancy The Mint Partners has bolstered its integrated client roster and signed a number of premium lifestyle brands to kick start the new financial year. With an array of new products, services, and a focus on insight-led and creative integrated communications, MINT has enjoyed recent success with an expanded portfolio across new categories including fintech, […]

opr Adds DocuSign To Client Roster
  • Media

opr Adds DocuSign To Client Roster

Sure, it might not be a Coke or a Qantas, but opr think this win significant enough to send well-meaning press release.

Stan Acquires Heckler Co-Produced Biopic On F1 champion Sir Jack Brabham
  • Media

Stan Acquires Heckler Co-Produced Biopic On F1 champion Sir Jack Brabham

A feature length documentary on the extraordinary racing career of Australia’s first Formula 1 champion, Sir Jack Brabham, co-produced by design, animation and visual effects house Heckler, will be available on Stan exclusively from this Friday – 7 August. Directed by Ákos Armont (Aurora Films) in association with Heckler, whose co-founder Will Alexander served as […]

Would TikTok Be Missed?
  • Opinion

Would TikTok Be Missed?

Columnist poses the question - would TikTok be missed? B&T says not as much as vanilla Paddle-Pops or Best Of Red Faces.

Opinion

by B&T Magazine

B&T Magazine
Jamie Whincup And A Host Of Aussie Personalities Star In Club Marine Series
  • Media

Jamie Whincup And A Host Of Aussie Personalities Star In Club Marine Series

In a first for the Australian insurance market, Club Marine, Australia’s largest provider of boat and pleasure-craft insurance, has released a new series of videos to help explain insurance cover. With a few familiar Aussie personalities to help out, Club Marine is helping its members, as well as the broader boating community, to understand the […]