Australian supermarkets bounce back

Posted by Andrea Hogan on 21st February 2018

Australia’s supermarket and grocery industry is expected to grow in 2017-18 after declining last financial year says IBISWorld.

After conducting its first quarter 2018 supermarket update, market researcher IBISWorld said it expects Australia’s grocery and supermarket industry to grow 2.2 per cent in 2017-18.

This follows a 0.6 per cent decline in 2016-17.

IBISWorld supermarket and grocery market share predictions for 2017-18

Major Player
Market Share 2017-18 

IBISWorld believes Woolworths will continue to gain market share to the point of 37.2 per cent by the end of 2017-18.

“As a result of the resurgence of Woolworths’ supermarket business, the company gained market share for the first time in several years in 2016-17,” IBISWorld Senior Industry Analyst, Nathan Cloutman said.

“This trend is expected to continue in 2017-18, with the company projected to account for 37.2 per cent of the industry by the end of 2017-18.”

According to IBISWorld, independent Metcash supermarkets are continuing to suffer from Woolworths, Coles and Aldi’s focus on competing with price.

“The price war between Woolworths and Coles, and the expansion of ALDI are putting pressure on smaller retailers,” Cloutman said.

Although Amazon is yet to sell fresh food items in Australia, the threat of an AmazonFresh entry is making online grocery sales increasingly important for the industry.

Revenue in the online grocery sales industry is forecast to grow at an annualised 12.4 per cent over the next five years.


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