Aldi soars above Aussie supermarkets

Aldi storeAldi has continued to succeed with the growth of its $90 billion supermarket budget, new Roy Morgan Research grocery expenditure data revealed.

While the discount grocer has continued to increase its market share, its local competitiors Coles remains steady and both Woolworths and IGA have declined.

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

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

It showed Australia’s grocery buyers spent $90.3 billion at supermarkets during the 12 months to March 2017. $32.2 billion was spent at Woolworths (35.7 percent of the market, down from 36.3 percent in the year to September 2016) and $30 billion at Coles (33.2 percent, unchanged).

“The latest research shows Aldi has again hit a new high and cemented its third spot ahead of IGA. Meanwhile Coles in now just 2.5 percentage points behind Woolworths, having narrowed the gap from eight percent over the last few years,” said Levine.

“Aldi’s growth in market share reflects its continued strong performance in delivering customer satisfaction. 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 percent 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.”

Aldi claimed $11.9 billion of grocery buyers’ expenditure during the year (13.2 percent, up from 12.5 percent), stretching its lead over IGA which fell to $8.4 billion (9.3 percent, down from 9.8 percent). The combined share of other supermarkets rose from 8.1 percent to 8.6 percent, or $7.8 billion.

“With industry-leading satisfaction and catalogue reach, we would expect Aldi’s market share to continue to climb. Coles, Woolworths and IGA, as well as smaller chains, will need to work to safeguard their shares against an ascendant Aldi and any new game-changing arrivals,” Levine concluded.

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