GROCERY TRADE – AUSTRALIA

It’s official: Majority of fresh meat now bought at Coles & Woolworths

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Original article by Roy Morgan
Market Research Update – Page: Online : 16-Apr-18

A Roy Morgan Single Source survey shows that Australia’s two largest supermarkets captured more than 50% of the $13bn+ fresh meat market for the first time in 2017. Woolworths Group had a 26.5% market share, up 1.1% since 2016, while Coles Group’s share rose 2% to 24.3%; their combined share of the fresh meat market was larger than all other retail outlets, including rival supermarkets Aldi and IGA, butchers, markets, other supermarkets and other non-supermarkets combined. Both Australian supermarket giants have enjoyed stronger growth in the fresh meat market over the past year than rival Aldi, which now has a 9.6% share of the fresh meat market, up 0.9% in a year – although all three have clearly taken substantial market share from traditional butchers. Ten years ago butchers and markets had 32% of Australia’s fresh meat market; today this is just under a quarter (24%). In the last 12 months fresh meat market share for butchers and markets dropped 3% points. This is the steepest drop of any time period in the last decade.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD, IGA

Woolworths increases lead in $100b+ grocery war

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Mar-18

A Roy Morgan Single Source survey shows that Woolworths had 32.2% of Australia’s total grocery market (including fresh food) in the year to December 2017, an increase of 0.8% over the 2016 result. Coles Group’s share of the grocery market rose by 0.1% in 2017, to 28.8%. Aldi’s market share rose 0.8% to 12.1%, but IGA’s share fell 1.1% to 7.4%. Non-supermarket food retailers such as butchers, fruit shops, markets and convenience stores currently have an 11.8% market share, which is down by a combined 0.8% points. Meanwhile, very few customers only shop at one supermarket; although 72.7% of grocery buyers shop at Woolworths, just 8% shop only at Woolworths. Likewise, 70% of grocery buyers shop at Coles, but only 6.6% shop there exclusively. The store overlap in shoppers of the big two is very large, with over half of them shopping at both Coles and Woolworths.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD, IGA

Aussie Farmers Direct wilts in tough market

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 6-Mar-18

Aussie Farmers Direct was placed into voluntary administration on 5 March, 13 years after it first began delivering fresh produce to people at home. It had 100 franchisees and 260 employees, and Craig Shephard of KordaMentha says the business will cease trading immediately. One part of the company, Home Delivery Services, is not affected by the collapse and will continue to trade. Aussie Farmers Direct had sales of $A137m in 2014-15, but it lost $A15.5m. Its failure has been attributed to competition from supermarkets and meal-kit providers.

CORPORATES
AUSSIE FARMERS DIRECT, KORDA MENTHA AND COLLEAGUES PTY LTD, EQUITY PARTNERS PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, SHAW INVESTMENTS, COLES SUPERMARKETS AUSTRALIA PTY LTD, CRESCENT POINT, PEPPERLEAF, YOUFOODZ, FIVEPOINTFOUR, TASTEBOX, YOUR GROCER, THOMAS FARM KITCHEN, DISH’D, GOURMET DINNER SERVICE

Aldi closes in on giants as profitability grows

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-May-16

UBS has forecast that Aldi will record annual growth in grocery sales in Australia of 15 per cent over the next three years. This is 4-5 times higher than the sector’s growth rate overall. Ben Gilbert of UBS forecasts that Aldi’s share of the national grocery market will exceed 10 per cent by 2019-20, compared with about seven per cent at present. He believes that the discount grocery chain will soon reach a "tipping point" in terms of its share of consumers’ main grocery shop.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, LIDL GMBH & CO KG

Costco profit surges as sales exceed $1b

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 21-Dec-15

Costco Wholesale Australia has posted a pre-tax profit of $A22.7m for the year ended August 2015, following a loss of $A10.7m previously. The grocery retailer’s revenue rose from $A878.5m to $A1.323bn, while its gross margin increased from 14.3 per cent to 14.6 per cent. IBISWorld estimates that Costco now boasts about 1.2 per cent of Australia’s grocery market, six years after opening its first Australian store.

CORPORATES
COSTCO WHOLESALE AUSTRALIA PTY LTD, IBISWORLD PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, COSTCO WHOLESALE CORPORATION

Aldi favours shock and awe over surprise in SA invasion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 19-Nov-15

Germany-based Aldi aims to open 16 stores in South Australia during 2016, with the first store slated to open on 3 February. Tom Kierath of Morgan Stanley forecasts that Aldi will boast a market share of about five per cent within 12 months of entering the state’s grocery sector. More than 35 per cent of Australians now shop at an Aldi store in an average four-week period, according to a survey by Roy Morgan Research. Aldi will also expand into Western Australia in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, ROY MORGAN RESEARCH LIMITED, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, IGA, METCASH LIMITED – ASX MTS

Metcash plays down threat of Aldi expansion into WA, SA

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 30-Sep-15

Aldi will enter the South Australian and Western Australian markets in 2016, with plans for 120 stores in coming years. IGA stores in the two states typically boast higher profit margins than those on the east coast, and Metcash CEO Ian Morrice believes that IGA stores in SA and WA are in a stronger position to compete with Aldi than IGA stores in Victoria and New South Wales. Morrice has also downplayed the prospect of a price war between Coles and Woolworths.

CORPORATES
METCASH LIMITED – ASX MTS, IGA, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, CELLARBRATION PTY LTD, THE BOTTLE-O, IGA LIQUOR, MITRE 10 LIMITED, TRUE VALUE HARDWARE LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

Is Metcash worth more dead or alive?

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Original article by Adele Ferguson
The Australian Financial Review – Page: 40 : 28-Sep-15

Metcash’s grocery wholesaling business accounts for more than 70 per cent of group earnings, but some experts have questioned whether the business will be viable in the long-term. The downturn in Metcash’s share price has prompted speculation that it may be targeted by private equity groups, with a view to a demerger. The IGA stores supplied by Metcash are also facing growing competition from Aldi, while allegations that some IGA stores have being underpaying their staff have emerged in the wake of the 7-Eleven scandal.

CORPORATES
METCASH LIMITED – ASX MTS, IGA, ALDI STORES SUPERMARKETS PTY LTD, 7-ELEVEN STORES PTY LTD, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, FOODWORKS SUPERMARKET GROUP LIMITED, FOODLAND AUSTRALIA LIMITED, LUCKY 7 HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, MITRE 10 LIMITED, DANKS HOLDINGS LIMITED, STANDARD AND POOR’S ASX 100 ACCUMULATION INDEX, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, LION PTY LTD

Pressure on Coles, Woolies at both ends

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 14-Aug-15

Aldi’s expansion will increase price competition and cut into the market share of supermarket giants Woolworths and Coles and Metcash’s IGA chain. The supermarkets are also likely to be squeezed at the top end of the market when David Jones revamps its food halls and opens stand-alone upmarket food stores. Moody’s says the twin-pronged attack by Aldi and David Jones will shake up the duopoly structure of Australia’s grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WOOLWORTHS HOLDINGS LIMITED

Pressure on Coles, Woolies at both ends

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 14-Aug-15

Aldi’s expansion will increase price competition and cut into the market share of supermarket giants Woolworths and Coles and Metcash’s IGA chain. The supermarkets are also likely to be squeezed at the top end of the market when David Jones revamps its food halls and opens stand-alone upmarket food stores. Moody’s says the twin-pronged attack by Aldi and David Jones will shake up the duopoly structure of Australia’s grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WOOLWORTHS HOLDINGS LIMITED