Woolworths and the IGA chain have been the biggest victims of Aldi’s steady rise in Australia, with the German newcomer now claiming a 13.2% share of the country’s $90 billion supermarket spend. Aldi is now clearly the nation’s third biggest chain behind market leader Wool
Roy Morgan Research‘s latest Supermarket Currency report, which calculated expenditure over the 12 months to March 2017, found that while Coles managed to maintain its one-third market share (33.2%), Woolworths has slipped 0.6% in the six month since September 2016 and now sits at 35.7%.
IGA shed 0.5% to 9.3%. .
Aldi now has $11.9 billion of the total grocery trolley after its share rose 0.7%, putting it $3.5 billion in spend ahead of IGA.
Other independent supermarkets also did well with their combined share growing 0.5% to 8.6%, now worth $7.8 billion.
Roy Morgan Research CEO Michele Levine said that given the size of the pie, a 0.1 percentage point change in market share is equal to nearly $100 million dollars in gross revenue.
“The latest research shows Aldi has again hit a new high and cemented its third spot ahead of IGA,” she said.
“Meanwhile Coles in now just 2.5 percentage points behind Woolworths, having narrowed the gap from 8% over the last few years”.
Here the charge showing the current breakdown:
Aldi’s success is reflected in other performance indicators, with the chain will winning Roy Morgan’s supermarket customer satisfaction award for 2016, with a 90% satisfaction level.
Roy Morgan also concluded the German chain has the country’s most read catalogue, however, the conversion rates are lower than its dominant rivals.
They work best for the incumbents: 52% of Woolworths’ catalogue reach leads to a sale, up from 48% in 2013, while Coles enjoys a 50% conversion rate and Aldi’s sits at 38%
Levine says all supermarkets will need to work harder as new players such as Amazon prepare to enter the market.
“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,” she said.