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Unpacking the Duopoly: Coles & Woolworths in Australia Ever wondered why Coles and Woolworths are the dominant forces in Australia's supermarket industry? Let's explore the strategies that keep them ahead and the impacts of their marketdominance. Key Strategies: 1. Economies of Scale – Booth of them have massive purchasingpower, allowing them to negotiate lower prices with suppliers. This advantage enables them to offer competitive prices that smaller retailers simply can't match. 2. Extensive Store Network – Expansion of store in every corner of Australia provide unparalleled convenience. Their presence makes it challenging for otherplayers to establish a foothold in the market. 3. PrivateLabel Products - By offering their own branded products, they can control quality and pricing. These private labels often come at lower prices, attracting budget-conscious shoppers while boosting profitmargins. 4. Loyalty Programs - Programs like Flybuys (Coles) and EverydayRewards (Woolworths) create a loyal customer base. These programs not only encourage repeat purchases but also provide valuable insights into consumer behavior. 5. Technology and Innovation – By investing in tech—from online shopping platforms to self-checkouts—enhances customer experience and streamlines operations. 6. Marketing and Branding - Aggressive marketing campaigns and strong brandpresence ensure they stay top of mind for consumers. Their consistent branding builds trust and recognition. 7. Product Range and Quality - Offering a vast variety of products, including fresh produce and exclusive items, ensures they cater to diverse customer needs. High quality standards keep customers coming back. Both the companies offer lowerprices and convenience through their extensive networks, while their competition drives productinnovation and provides numerous employment opportunities across Australia. However, the duopoly creates significant challenges for small retailers and suppliers in Australia. Their dominant market position allows them to dictate terms and prices, often squeezing margins for suppliers and making it difficult for smaller competitors to thrive. Independent grocerystores struggle to compete with the low prices and extensive product ranges offered by these giants, leading to reduced market diversity and fewer choices for consumers. Additionally, the heavy reliance of many suppliers on these two supermarkets can result in unfavorable conditions and decreased bargainingpower, ultimately impacting the broader retail ecosystem. What are your thoughts on the Coles and Woolworths duopoly? Share your insights below! 👇 #Retail #BusinessStrategy #SupermarketIndustry #Coles #Woolworths #Australia #MarketAnalysis #CustomerExperience #Innovation #Economy

The number of supermarkets opening each year in the UK can vary significantly based on market conditions, consumer demand, and expansion strategies of major supermarket chains. Recent data indicates that the supermarket sector is experiencing steady growth, with various chains continuing to expand their physical store presence. For instance, in recent years, leading supermarket chains such as Aldi and Lidl have been particularly aggressive in their expansion plans. Aldi has been opening approximately 40-50 new stores annually in the UK, aiming to reach 1,200 stores by 2025 , should you wish to find out more in regard to the retail landscape please get in touch. #retaildata #retailopenings #supermarketdata

How much is mass price matching killing retail innovation in the UK? Last week Asda launched a bold marketing strategy against its retail rivals announcing it would be the latest supermarket to price match Aldi and, for the first time, Lidl.   This concentrates on 287 comparable grocery products, aiming to help return it to the position of the UK’s second-biggest supermarket.    But what is the cost of this price-matching strategy in the long term?   ◾️How much does this keep customers loyal vs simply driving short-term footfall?  ◾️How risky a strategy is promoting your fiercest rivals’ pricing – noting Tesco and Sainsbury are already doing this? ◾️How much of a race to the bottom are the pricing strategies of UK grocery retailers?   The recent figures released by Kantar on the Christmas trading data show impressive gains by Aldi, Lidl and Sainsbury’s over this period. What are your thoughts? #groceryretail #customerloyalty #retail #retailinsights

According to a survey conducted by UBS analysts, Coles, the second-largest supermarket chain in Australia, is significantly closing the competitive gap with its larger rival, Woolworths. This shift indicates that Coles is making substantial strides in market share, supplier relationships, and overall performance. The survey highlights a growing competitiveness in the Australian supermarket sector, suggesting that Coles is gaining ground through various strategic improvements and efficiencies, potentially altering the dynamics of the market. #Coles #Woolworths #AustralianSupermarkets #MarketShare #RetailCompetition #UBSReport #SupermarketWars #GroceryIndustry #RetailTrends #ColesVsWoolworths #RetailMarket #SupplyChain #GroceryRetail #SupermarketNews #RetailAnalysis #AustralianRetail #MarketDynamics #RetailPerformance #CompetitiveEdge #ConsumerTrends

Talk of breaking up the major supermarkets is a terrible idea IMO. While it may sound good to those envisioning more competition, when you look at how close the majors are to peers, its pretty clear consumers generally have decent choice on where they elect to shop. Wreaking havoc on their incredibly finely tuned supply chains and stocking processes would surely send prices up. For example across the 1,116 Woolworths Supermarkets we covered in our latest report, the median distance to the next closest supermarket we assessed was only 311 metres. Coles Group was even tighter with a median of 242 metres, while ALDI Stores Australia, with a strong co-location model, was typically just 179 metres away from its nearest peer. Looked at another way, across Greater Sydney for example, the average 3km radius around each supermarket possessed 11.6 supermarkets in total! Interactive data across 17 brands with regional splits can be found here for those wanting it: https://lnkd.in/gPZw4hKw Yes these are medians influenced by dual-anchored shopping centres, and including some regional stores would blow out the average, but medians have their place and in the case of WOW this means 557 stores are below this 311m number. For proponents of a breakup, I'd consider strongly the level to which you believe competition gains would offset the inevitable surge in supply costs. #cre #supermarkets

There is no surprise that Coles Group is excelling in winning the value consumer market. Over the past 24 months, they have strategically expanded their private label program with great success through the multi-tier approach - Coles Simply, Coles, & Coles Finest. These products are not only well-positioned and stocked in-store but also maintain a high standard of quality. With the recent opening of the second automated distribution centre (ADC), Coles Group is poised for further growth in market share, enhancing productivity, and service levels for both stores and consumers. Despite being a smaller business in terms of revenue and store numbers, Coles Group's focused approach on its core supermarket business sets it in a strong position, allowing undivided attention to address any issues and drive performance. Moreover, Coles Group benefits from a significant CODB advantage and currently delivers an enhanced in-store experience. The rebranding of Vintage Cellars & First Choice liquor stores to Liquorland reflects strategic simplification and clarity for both consumers and the organization, leading to cost savings in the future. #focused #foodretail #qualityexecution #smartmoves

Sainsbury’s Focused On Improving Availability Sainsbury’s is testing new measures that aim to improve efficiency and product availability in its stores. According to trade publication The Grocer, trials are underway at its recently refurbished superstore in Cobham, which it hopes to roll out across its estate. The report notes that Sainsbury’s has already seen a significant improvement in its availability performance over the past year, rising from 92.5% in 22/23 to 94.1% in 23/24. Only Tesco performed better, with 94.6%. More recent analysis by The Grocer shows Sainsbury’s availability has improved further in recent months. It is currently running at 94.8% following the completion of a project to implement a new Blue Yonder forecasting system this summer, which the group’s Chief Executive Simon Roberts has previously described as a “game-changer”. The current trials in the Cobham store are said to focus on making the replenishment process more efficient. For example, Sainsbury’s has rearranged the warehouse area so that bestselling lines can be restocked in “no more than 60 steps”. The Grocer highlighted that Sainsbury’s is also borrowing some lessons from the discounters, selling heavier items from shipping pallets and displaying other items on shelves in the same boxes used to transport them. The supermarket is also rolling out spring-loaded and push-feed merchandisers across a number of categories. The initiatives are expected to be introduced as Sainsbury’s refurbishes 180 of its largest stores over the next three years and overhauls the layout of its convenience outlets. NamNews Implications: * Given the difficulty in persuading consumers to visit a store… * …and the double-difficulty/cost in securing a return visit, following a ‘shelf-gap’… * …then maintaining high levels of availability has to be the first rule of retail. * The only issue is how Numbers 3 & 4 can continue to cope with the availability pace being set by Tesco & Sainsbury’s? #ProductAvailability #Tesco #Sainsbury's #Morrisons #Asda See today’s key items on Kamcity: links in comments below

🛒 Coles and Woolworths Full Financial Year 2024 Results. This was a very challenging year for both major Australian supermarket chains. Government inquiry, cost of living pressure, consumers' backlash, challenging and costly transformation projects and PR disasters. This was also the last year for Brand Banducci at the helm of Woolworths. Amanda Bardwell, Woolworths veteran with over two decades of experience at the retailer, took over and will try to turn things around after a very challenging year. Despite the challenges, Coles grew +4.3%, and Woolworths grew +3.4% versus year ago (supermarkets divisions). In Q3'24, Coles growth was almost 4x that of Woolworths (5.1% vs 1.3%), but in the fourth quarter Coles slowed down and allowed its main competitor to bridge the gap on the full year basis. More insights on the slides. Stay informed. 🤝 #fmcg #retail

🚀 BREAKING NEWS in FMCG! 🚀 Don't Miss Out! 🕒 Digest these top 5 updates in under a minute! With Stanislas Dallest from POS Potential 🔥 #5 Walmart’s Game-Changer: Expanding drone delivery to 31 hubs across 6 states, Walmart is revolutionizing how we receive our e-commerce orders. Get ready for faster, tech-driven convenience at your doorstep! 🥣 #4 Sidemen & Mornflake Mighty Oats's Delicious Partnership: The British YouTube collective, The Sidemen, teams up with Mornflake to introduce Best Cereal to the breakfast tables. It’s not just a cereal; it’s a statement! 🏪 #3 ALDI USA’s Bold Expansion: With a whopping $9 billion investment, Aldi plans to open 800 new stores in the US over the next five years. Aldi’s commitment to accessibility and affordability continues to grow! 🍹 #2 Spiked Jones - A New Twist: Jones Soda Co., in collaboration with Locust Cider Rainmaker, introduces Spiked Jones, merging the iconic soda flavors with an alcoholic twist. Get ready to sip on nostalgia with an edge! David Knight ♻️ #1 Too Good To Go Hits Melbourne: Combatting food waste with technology, Too Good To Go launches its app in Melbourne. Grab surplus food at lower prices and join the movement towards sustainability! 🌟 Stay Ahead of the Curve: Like and follow us for the latest and greatest in FMCG news. 👋 See You Next Week for More Eye-Opening Insights! #FMCG #Updates #Innovation #Sustainability #Tech #Retail

🏆 Winner Declared in Aussie Supermarket Price War! A recent CHOICE report has crowned ALDI Stores Australia as the cheapest option for Aussie shoppers, beating out Coles Group and Woolworths Supermarkets. Here are the key takeaways: 📉 Price Breakdown: - Aldi: $50.79 (down from $51.51 in March) - Coles: $66.22 (down from $68.52 in March) - Woolworths: $68.37 (up from $64.93 in March) 📊 Despite Aldi's consistently lower prices, it still holds only a 10% market share compared to the combined 65% of Coles and Woolworths. ⚖️ Interesting Data Points: - Woolworths' basket price increased by $3.44 between March and June. - Coles saw a drop of $2.30 during the same period. - CHOICE emphasized the benefits of shopping specials, which can drastically affect overall costs. 📢 Call to Action: With significant savings at stake, it might be time to give Aldi a try and see the difference for yourself! #CostOfLiving #Aldi #Coles #Woolworths #GroceryPrices #AustralianBusiness #EconomicNews