Aldi’s market share continues to grow, but for how much longer?
Aldi’s share of Australia’s supermarket dollar continues to grow, but can the German discount chain maintain its current growth rate with new competition on the horizon?
According to the latest data from Roy Morgan Research, Aldi now has a 13.2 per cent share of Australia’s supermarket spend, up from the 12.5 per cent share it had six-months ago.
Coles has held its share, taking AUD $30 billion, or 33.2 per cent of the spend, whilst Woolworths has lost some of its spend, falling from having a 36.2 per cent share six-months ago to 35.7 per cent in March 2017.
Metcash’s IGA also lost some of its share, it now has a 9.3 per cent, whereas it had 9.8 per cent six-months prior.
Shares of the $90.3 billion spent at Supermarkets in 12 months to March 2017
Source: Roy Morgan Single Source Australia, April 2016 – March 2017, sample n = 11,923 Australian Grocery Buyers 14+.
Although Aldi may be growing, it soon will have to compete with AmazonFresh, and possibly another similar discount German supermarket chain, Kaufland, which is currently conducting feasibility studies into entering Australia.
Michele Levine, Chief Executive Officer of Roy Morgan Research, said with over $90 billion a year spent at supermarkets, every 0.1 percentage point change in market share is equal to nearly a hundred million dollars in gross revenue lost or gained.
“With German discount chain Lidl and its big box ‘hypermarket’ parent Kaufland, as well as Amazon Fresh, all rumoured to be setting up shop in Australia this year, supermarkets need to a firm grasp of their market shares, and strengths and weakness in different grocery categories and between different types of consumers,” Levine said.
“The latest research shows Aldi has again hit a new high and cemented its third spot ahead of IGA. Meanwhile Coles in now just 2.5 percentage points behind Woolworths, having narrowed the gap from eight percent over the last few years.
“Aldi’s growth in market share reflects its continued strong performance in delivering customer satisfaction. In 2016, Aldi won its fourth consecutive Roy Morgan Customer Satisfaction Award for Supermarket of the Year. The latest data shows Aldi retains the lead among the Big Four supermarket chains, satisfying over 90 percent of its customers overall, with—perhaps surprisingly—particular strength in meat and fresh fruit and vegetables, as well as the general merchandise which is a distinguishing feature against competitors,” she said.
“Also, as Roy Morgan revealed in March, Aldi is now the country’s most-read supermarket catalogue, with 5.1 million Australians having a look-see about its special offers in an average week. With industry-leading satisfaction and catalogue reach, we would expect Aldi’s market share to continue to climb. Coles, Woolworths and IGA, as well as smaller chains, will need to work to safeguard their shares against an ascendant Aldi and any new game-changing arrivals,” Levine concluded.
- Aldi announces new business strategy
- Aldi’sfresh move
- Aldicontinues WA and SA expansion with more stores
Australia’s largest specialty fresh chicken store has introduced its new range of ready-to-cook turk...
THE latte still reigns supreme as the country’s most popular coffee drink despite total sales decrea...
Orlando are bringing back memories and creating new ones with the relaunch of this classic Aus...
Yesterday, China banned Viplus Dairy, a Victorian infant formula maker, from selling its products on...
ALREADY bruised and battered by diet and social trends, red meat is required to fight compelling cla...
Australian jerky producers, Local Legends, are selling two new jerky varieties.
Chobani Yoghurt has opened a Chobani Café inside a Target store in New York.
A leadership change has been announced for New Zealand dairy giant, Fonterra.