Results are in for customer favourites

In the battle for the modern grocery shopper, Woolworths edges out Coles, but watch out for Aldi.

The findings are from the inaugural Australian Grocer Retailer Preference Index (RPI) released by customer data science platform Dunnhumby. The report was modelled after a series of studies that Dunnhumby conducted in the US and covers customer preference for grocery retailers, as well as the various levers that retailers can pull to improve their rankings.

What do customers care about?

  • Convenience and quality
  • Easy shopping experience
  • Price
  • Operations
  • Drive time

Who wins the race?

  • Woolworths narrowly edged out Coles for the number-one position with an RPI score of 95 versus 91.
  • Aldi looms closely behind as the ‘accelerating threat’ with an RPI score of 69.
  • IGA and 7-Eleven are are currently trailing “on weak perceived value propositions”.

“Aldi has built the strongest emotional connection with its customers by delivering consistently low prices, quality products and higher perceived ‘value’,” Dunnhumby Commercial Director ANZ Keri-Jane Jacka said.

“Further, our findings show Aldi customers are more likely to recommend the retailer to their friends and family, and be sad if their nearest store closed.

 Other key findings

  • Prices correlate with trust and other emotional attributes, providing an emotional connection for customers and will ensure that people are attracted and stay long term.
  • Store catalogues continue to play a key role in customer pre-store influence. This suggests that customers continue ‘cherry picking’ and budgeting across all retailers.
  • There is very little loyalty between retailers, even those who primarily shop at Coles and Woolworths, will spend one third of their shopping at Aldi.
  • Aldi is shifting the price expectations making customers more price sensitive.

“With Aldi outperforming on all price attributes and developing a real connection with its customers, Woolworths and Coles must continue to invest in data-driven retail strategies to foster loyalty and build trust in order to remain the preferred grocery retailers amongst shoppers,” Ms Jacka said.

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