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Competition heats up as ALDI’s market share grows

ALDI has continued to increase its share of Australia’s $90 billion supermarket budget, according to the latest Roy Morgan Research ‘Supermarket Currency’ report.

The report says Australia’s grocery buyers spent $90.3 billion at supermarkets during the 12 months to March 2017, with:

  • $32.2 billion spent at Woolworths (35.7 per cent of the market).
  • $30 billion at Coles (33.2 per cent).
  • $11.9 billion at ALDI (13.2 per cent).
  • $8.4 billion at IGA (9.3 per cent).
  • $7.8 billion at other supermarkets (8.6 per cent).

“With over $90 billion a year spent at supermarkets, every 0.1 percentage-point change in market share is equal to nearly $100 million in gross revenue lost or gained,” Roy Morgan Research CEO Michele Levine said.

“With German discount chain Lidl and its big-box ‘hypermarket’ parent, Kaufland, as well as Amazon Fresh, rumoured to be setting up shop in Australia this year, supermarkets need to have a firm grasp of their market shares, and their strengths and weakness in different grocery categories and between different types of consumers.”

She says the latest research shows ALDI has again hit a new high and cemented its third spot ahead of IGA, while Coles is now just 2.5 percentage points behind Woolworths, having narrowed the gap from eight per cent over the past few years.

“ALDI’s growth in market share reflects its continued strong performance in delivering customer satisfaction,” Ms Levine said. “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 per cent 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.”

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