IGA climbs the customer satisfaction ladder

Posted by Nicole Eckersley on 11th January 2011

According to the latest Roy Morgan Supermarket Customer Satisfaction figures, customer satisfaction among IGA shoppers has grown by a full percentage point, bringing the independent retail group firmly into second place behind consistent front-runner Aldi.

Among Aldi customers, 90.5% were satisfied, followed by IGA (89.5%), Woolworths (87.5%) and then Coles (85.5%) for the 6 month’s average to October 2010.

IGA fell into last place in April last year, with satisfaction around 84%, but customer satisfaction took an upward turn, and is now at its highest for the chain since June 2007.

Woolworths experienced a smaller jump in customer satisfaction, but enough to take them to levels not seen in over three years.

“With more than five percentage points gained since March, IGA are not only one percentage point behind Aldi in customer satisfaction, but also one percentage point away from their best satisfaction score in five years,” said Norman Morris, Industry Communications Director, Roy Morgan Research.

“Woolworths satisfaction levels are also at the highest they’ve been since mid 2007, and although the reported increases are not as pronounced as IGA, Woolworths are also in a strong position to take out the top position. Unlike its competitors, customer satisfaction amongst shoppers at Coles is not showing any significant growth.

“Currently IGA hold just over ten percent market share of the grocery market dollars, which would potentially increase to twelve percent through the proposed Franklins chain acquisition. The recent news that the ACCC have opposed IGA owners Metcash in their attempt to acquire the Franklins supermarket chain may be just a temporary stall for IGA, but if it proceeds it is unlikely to impact on either stores satisfaction levels as they are both currently very similar,” he said.

Coles and Aldi satisfaction remained largely unchanged, with Aldi taking a slight downturn and Coles a slight upturn.

Aldi maintain the top position in customer satisfaction in October 2010. IGA were not far behind after increasing by one percentage point on the previous month. Woolworths and Coles remained relatively stable in their satisfaction scores, with the ranking of the supermarkets unchanged according to latest Roy Morgan Supermarket Satisfaction Report for October 2010.