SUPERMARKETS – AUSTRALIA

IGA prepares for Aldi attack

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 17-Sep-15

Aldi will expand into the Western Australian and South Australian markets in 2016, and it will pose a major threat to Metcash in particular. Nearly 30 per cent of stores that trade under Metcash’s IGA banner are located in these states. Morgan Stanley believes that Aldi’s entry could slash the sales of independent retailers operating under the IGA banner by about $A360m a year, while Metcash itself could face a sharp fall in sales. Its market share in the eastern states is already falling, although a survey by Roy Morgan Research shows that it boasts the highest level of customer loyalty.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, IGA, COLES GROUP LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, ROY MORGAN RESEARCH LIMITED, SIMMO’S ICE CREAMERY

Supermarket loyalty: what’s that?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Sep-15

A Roy Morgan Single Source survey has found that 77 per cent of Australian grocery buyers visit at least two different supermarkets in an average four weeks. The survey, which was carried out in the year to March 2015, also shows that IGA has the most loyal customers, with 30% of people who mainly shop at IGA only shopping there during any given four-week period. Grocery-buyers who mainly shop at Woolworths/Safeway are the second-most likely (25 per cent) to stick with their number one supermarket, marginally ahead of Coles shoppers (24 per cent). Despite its increasing overall market share, ALDI has a much lower proportion of exclusive shoppers (seven per cent). Meanwhile, seven per cent of grocery buyers said they shopped at all four major supermarkets.

CORPORATES
ROY MORGAN RESEARCH LIMITED, IGA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN SAFEWAY STORES PTY LTD, ALDI STORES SUPERMARKETS 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

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Metcash in alleged stall on SupaBarn deal

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-Jul-15

The Australian Competition & Consumer Commission will decide in September 2015 whether to approve Coles Group’s deal to buy SupaBarn. The deal would give Coles an additional nine supermarkets in the Australian Capital Territory and Sydney, although it has existing stores in close proximity to each SupaBarn outlet. Metcash has raised concerns with the ACCC about the proposed deal’s effect on competition, but the grocery wholesaler rejects suggestions that it has organised a supplier campaign against the deal.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, SUPABARN SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, INDEPENDENT GROCERS OF AUSTRALIA, MASTER GROCERS’ AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Supermarkets dominate fruit and vegetable trade – even among people shopping at produce markets

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Jul-15

A Roy Morgan Single Source survey has found that 87 per cent of Australian grocery buyers aged 14+ bought fresh fruit and vegetables during an average week in the year to March 2015. Some 72 per cent bought fruit and vegetables at a supermarket in an average seven days, while 11 per cent shopped for fresh produce at a market or stall. The survey also shows that 54 per cent of consumers who bought fruit and vegetables at a market or stall also did so at a supermarket.

CORPORATES
ROY MORGAN RESEARCH LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Coles, Woolies cut private label prices to ward off Aldi incursion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 15-Jul-15

Data from Deutsche Bank shows that there was a 1.3 per cent increase in the prices of brand-name groceries in the June 2015 quarter. However, the prices of private-label products fell by 6.1 per cent, as Coles and Woolworths sought to defend their market share against Aldi. Deutsche’s supermarket inflation survey also shows that the price of a basket of brand-name groceries at Coles increased by 5.1 per cent during the quarter, compared with a 2.6 decline at Woolworths.

CORPORATES
DEUTSCHE BANK AG, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE EQUITIES LIMITED, METCASH LIMITED – ASX MTS, SUPA IGA

Light at end of the tunnel for Ritchies Stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Ritchies Stores’ earnings have fallen by 73 per cent since 2011, but chairman Fred Harrison says the grocery chain returned to profit growth in the 2014-15 financial year. Ritchies is supplied by grocery wholesaler Metcash, and Harrison notes that Metcash’s store refurbishment and price-matching strategy for the IGA network has helped to boost his company’s sales. Harrison adds that price competitiveness has become essential for independent grocery retailers.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE SECURITIES PTY LTD