Distrust replaces trust for Coles and Woolworths – and it’s just the beginning

May 8, 2024roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 8-May-24

Amidst a massive cost of living crisis, calls for an inquiry into allegations of price gouging and heightened media coverage of profit announcements, trust for Australia’s supermarkets has been decimated. Coles has plummeted 221 places from its December 2023 ranking as Australia’s 5th most trusted brand to become the 9th most distrusted brand (on a 12-month rolling average to March 2024). Woolworths has in turn dropped 32 places from its December 2023 ranking as Australia’s 2nd most trusted brand to become the nation’s 34th most trusted brand in March. Roy Morgan CEO Michele Levine says we have been tracking trust and distrust of brands in Australia for more than seven years, but we have never seen a reputational crash as dramatic as Coles and Woolworths. This is in direct contrast to the soaring reputational trust that they gained during the pandemic. Roy Morgan’s data reveals even more dramatic declines in the coming months; its best estimate is that it will take the two supermarket brands at least two years to recover from such a dramatic reputational crash, and only if they can develop and execute a data-driven recovery strategy that is built on much more than PR and spin.

CORPORATES
ROY MORGAN LIMITED, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Coles to expand its private label offering

May 1, 2024roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 13 & 19 : 1-May-24

Coles Group has reported that its total sales rose by 3.4 per cent to $10.03bn in the March quarter. Its supermarket division’s sales were up 5.1 per cent to $9.07bn, with sales of private label grocery products rising by 8.8 per cent to $3.1bn. In contrast, its liquor store division’s sales fell by 1.9 per cent to $786m. Coles CEO Leah Weckert says cost-of-living pressures weighed on liquor sales during the quarter, but also help boost sales of ‘home brand’ grocery products. Weckert adds that Coles is responding to the latter trend by expanding its range of private label products, including the more premium Coles Finest range.

CORPORATES
COLES GROUP LIMITED – ASX COL

Australia’s major supermarkets accused of purchasing properties to turf out independent stores

April 12, 2024roymorgansocial Leave a comment

Original article by Jonathan Barrett
The Guardian Australia – Page: Online : 12-Apr-24

The Senate inquiry into supermarket prices has been told that grocery giants Coles and Woolworths engage in land-banking to prevent smaller rivals from opening a store near their supermarkets. Grant Ramage, the CEO of Metcash’s food division, said the duopoly is also prepared to pay inflated prices to buy out rivals in order to stifle competition, while they have been known to buy retail properties that are tenanted by independent supermarkets and subsequently not renew their lease. Aldi Australia’s CEO Anna McGrath has told the inquiry that rival supermarket chains often reduce their prices when the Germany-based company opens a new store near their existing outlets.

CORPORATES
METCASH LIMITED – ASX MTS, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD

Coles warns on price rises as shoppers grab home brands

February 22, 2023roymorgansocial Leave a comment

Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 & 18 : 22-Feb-23

Coles Group has advised that CEO Steven Cain will step down on 1 May after five years in the role. He will be succeeded by Leah Weckert, who will be the first woman to run a major supermarket chain in Australia. Coles has posted a 2022-23 interim net profit from continuing operations of $616m, which is 11.4 per cent higher than previously; revenue rose four per cent to $20.59bn. The company has indicated that price inflation rose to 7.7 per cent across its product range in the December quarter, up from 7.1 per cent in the September quarter. However, Cain expects inflation to moderate in the second half of the financial year. Weckert notes that many consumers are switching to home-brand grocery products amid the cost-of-living pressures.

CORPORATES
COLES GROUP LIMITED – ASX COL

Aldi crowned Supermarket of the Year for fifth year running

August 3, 2022roymorgansocial Leave a comment

Original article by Sezen Bakan
The New Daily – Page: Online : 3-Aug-22

Aldi has topped Canstar Blue’s annual supermarket satisfaction ratings for a fifth consecutive year, ahead of Coles, Woolworths and IGA. Aldi Australia’s MD Oliver Bongardt said the Germany-based retailer has saved Australians more than $7 billion since entering the local market in 2001. Canstar Blue notes that Australia’s supermarkets have shifted their focus to value and the overall customer experience rather than competing on price. Aldi was also recently named the Supermarket of the Year by Roy Morgan for the second year in a row.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS SUPERMARKETS, IGA, ROY MORGAN LIMITED

Woolworths freezes price of everyday items

June 16, 2022roymorgansocial Leave a comment

Original article by Carrie LaFrenz
The Australian Financial Review – Page: 15 : 16-Jun-22

Grocery retailer Woolworths has responded to the rising cost of living by announcing that it will freeze the price of essentials such as sugar, flour and frozen peas until the end of 2022. CEO Brad Banducci says the spike in inflation has now affected prices in most grocery categories, having initially been largely confined to meat and imported products. Woolworths’ average prices rose by 2.7 per cent during the March quarter, and about 40 per cent of its suppliers requested a further price increase in May.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW

It’s money in the till as Ritchies’ profit doubles

November 3, 2020roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 3-Nov-20

Independent supermarket retailer Ritchies has advised that its pre-tax profit for the 12 months ending June rose 98 per cent to $37.7 million. Net profit was up 79 per cent to $24.9 million, while sales increased by 14.7 per cent to $1.25 billion. CEO Fred Harrison said COVID-19 had helped bring about its better result, but he believes Ritchies was already on the improve before the pandemic hit. Harrison reaffirmed that he had no plans to exercise a put option to sell Ritchies to grocery, liquor and hardware wholesaler Metcash, which owns 26 per cent of Ritchies.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS

Leakage and larceny as supermarkets compete, with online grocery shopping the next big battleground

July 8, 2020roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 8-Jul-20

Australians spent $94.6 billion in supermarkets in the year to March 2020. Data from Roy Morgan’s latest Fresh Food & Grocery Report shows that, between them, the Woolworths Group and the Coles Group took 67.5% of that total. Woolworths has the larger share of overall spend, but Coles isn’t too far behind. However, when it comes to online grocery shopping, which has shaped up as the next major battleground, the difference is marked. At ease buying many other things online, Australians have long preferred to do their grocery shopping in person. By March 2020, as the COVID-19 pandemic took hold, only 3% of the nation’s total supermarket spend was taking place online. Woolworths accounted for 57.4% of all online supermarket spending, compared to Coles’ 26.1%. The arrival of the pandemic turbocharged the move to online grocery-buying to such a degree that demand could not be met and services were temporarily restricted. With lockdown no longer in place except in specific Melbourne locations, shoppers have increasingly returned to physical locations throughout Australia, but it is likely that many of those who recently made the move to online groceries will continue to use that option, at least some of the time.

CORPORATES
ROY MORGAN LIMITED, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Grocery delivery delay as online orders soar

March 10, 2020roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 10-Mar-20

Online grocery sales rose 45 per cent year-on-year in the four weeks to 22 February, according to Nielsen Homescan data. The surge in demand has been attributed to the coronavirus crisis, with consumers wanting to secure supplies of products such as toilet paper and paper towels. Coles and Woolworths are struggling to keep up with online demand, and Coles is advising consumers to collect orders rather than have them delivered. It is also giving priority to the elderly, the sick and those with special needs.

CORPORATES
THE NIELSEN COMPANY (AUSTRALIA) PTY LTD, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

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