End of supermarket power? Wesfarmers decision to spinoff Coles
Wesfarmers decision to spinoff Coles into a separate business may just signal the end of supermarket power in Australia.
Where once supermarkets spelled out big dollars, the industry is changing and it is taking a toll on the traditional supermarket’s profit margins.
For one, a number of retailers have spoken out recently about rising rent and competition in shopping creating a difficult environment to operate successfully in.
In 2017, Sumo Salad for example announced it would be moving away from shopping centres because of the influx of other food retails into centres. SumoSalad said it was too hard for its business to make the high shopping centre rent with such stiff competition.
The Retail Food Group also attributed the recently announced closure of 160-200 of its Australian food outlets largely to costly rent and declining shopping centre performance.
Outside the shopping centres, Aldi has been busy snatching up supermarket shoppers for years, offering something different to the two big two supermarkets.
Things are only going to get worse in this department with Kaufland buying property in Australia and preparing to open up.
Lastly, the Australian entry of Amazon has signaled a start of a no doubt strong attempt to convert Australians over to online purchasing of everyday goods.
Although Australians are really yet to take up online grocery shopping at great numbers, new and enticing offers from Amazon, and other competitors, are likely to win over more customers.
Where once supermarkets were super businesses in Australia, times are changing. This is evident with Coles decision to spin-off Coles.
- Wesfarmers’ woes compounded by Coles supermarkets results
- Wesfarmers profit to be hit by struggling UK Bunnings venture
- Coles suffers sales slow down in first quarter, FY18
Australia’s new country of origin labelling (‘CoOL’) scheme has commenced as of 1 July 2016, introdu...
With 1.5 billion cups of coffee consumed a day, Change Coffee – World Vision Australia’s first soci...
CAUTION is being urged about the findings of a French study that found those who ate more organic pr...
Market intelligence researchers Mintel predicts there are 5 key trends in 2018.
ALDI Australia has released a new report - ‘Making a Good Difference: how ALDI contributes to the Au...
NUTRITION and corporate leaders have joined to launch the latest attempt to get Aussies to eat their...
New Zealand’s Restaurant Brands has acquired 10 Australian KFC sites from Yum! Brands.
A new study has found children who drink low-fat milk can increase their chances of obesity when com...