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Woolworths secures a third of Australia’s total grocery spend in 2018

  • Posted on Thursday 11th, April 2019.

Supermarket company, Woolworths, increased its share of Australia's grocery market to 34 per cent in 2018, up 1.4 per cent, while the newly independent Coles dropped to 27.6 per cent, according to survey data.

German supermarket company, Aldi, has had a good year, according to market research company, Roy Morgan, with a growing market share of 11.4 per cent (up 0.5 per cent from a year ago).

Woolworths' dominance is built on strong leads in key fresh food categories with the Sydney-headquartered operation increasing its lead over Coles. Roy Morgan said the two brands currently dominate Australia's fresh food markets holding over 50 per cent of each in the fresh food markets.

Roy Morgan CEO, Michele Levine, said that the impressive performance of Woolworths over the last year has Australia's leading grocery retailer in a strong position to deal with the entry of German 'hypermarket' Kaufland into Australia's $100-billion-plus grocery market.

“The demerger of Coles Group from industrial conglomerate Wesfarmers in the December quarter of 2018 means Australia’s second largest supermarket chain now has the opportunity to refocus on its core business ahead of the imminent arrival of German retailer Kaufland," said Levine.

“Kaufland has already bought six industrial sites in Melbourne at which it plans to open its successful ‘hypermarkets’ over the next two years before rolling out stores Australia-wide following in the footsteps of fellow German retailer Aldi. Aldi also had a good year in 2018 and grew its share of the total grocery market by 0.5ppts to a new high of 11.4% per cent.

“In addition to Kaufland the Australian grocery market is also anticipating a rollout of the ‘Amazon Fresh’ brand in the near future after the American Internet giant launched a food and grocery segment (although not yet fresh food) in the December quarter 2018," she said.

The December Supermarket & Fresh Food Currency Report is compiled from data collected as part of Roy Morgan’s Single Source survey, which involves more than 50,000 in-home, face-to-face interviews each year, including more than 12,000 detailed surveys of grocery and fresh food buying behaviour.

Earlier this month, Woolworths was upbeat about buy-back despite Big W closures.

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