Supermarket Industry in Australia

Topics: Supermarket, Retailing, Marketing Pages: 23 (6066 words) Published: May 21, 2011

Supermarket industry market size
Shopping habits
Industry employment and their wages
Basis of competition
Market segmentation
Product and services segmentation
Positive growth factors
The Porter’s Five Forces Model
Supermarket industry attractiveness
Keys competitors
Financial ratio analysis
Sales growth
Ebit margin
Ebitda margin
Inventory days
Current ratio
Return on investment
Return on assets
Competitive move
Woolworth’s Ltd
Coles Myer Ltd
Company background
Participation strategy
Internal operations
External operation
Supply chain
Total services management (TSM)
Marketing strategies
Private label
Shareholder value forecast spreadsheet
Appendix 1 Product and services segment
Appendix 2 history and corporate development of woolworth Ltd Appendix 3 Subsidiaries of Woolworth Ltd

Supermarket industry market size
In 2004 to 2005 the supermarket industry generated a revenue of $54.8 billion with an increase of 2.8 percent compared to 2003-2004.(Ibisworld 2006) The supermarket industry generated a gross product of $6.0 billion with an increase of 2.9 percent compared to 2003-2004. The total retail market for supermarket and grocery goods is estimated to be around $ 64 billion.(ibisworld 2006) According to Euromonitor international supermarket has the largest propotion of the total retailing sales in Australia in the year 2005.

Shopping habits
Australian are health concerned nowadays and so leading supermarkets Woolworth and coles expanded their health sections and fresh product ranges. According to glabol market reseach Australian are changing their shopping habits. Consumer tends to make more frequent but shorter trips to supermarket and more than half of the consumers spend less than half an hour in per visits.

Industry employment and their wages
According to ibisworld 2006 in 2004-05 the supermarket industry employed around 246,950 people with a rise of 1.5 pecent and wages for this industry is near $5.6billion with an increase of 0.9 percent. According to eoromonitor international 2005 the industrial relations commission decided to increase the minimum wage by $19 per week in 2004 and also increase the minimum weekly wage to $467 before tax. The increment will affect retailer profitability and will put several job at risk because retailer may be forced to cut down employees to remain profitable. Moreover it will affect the retailers as they have less capital to expand or invest into new business.

Basis of competition
Fiere competition among different retail formats
Supermarket face strong competition not only within the same industry. They also face competition from discounters as discounter’s offers extesive range of products at everyday low prices.(ibis report 2006). Food specialist such as bakeries, drinks stores and chocalatioes can offer a wide range of products that supermarket and discounter are not able to offer. According to global market information bakeries such as brumby and bakers delight offer a greater range of bakery product compared to supermarket and convenience store. Convenience stores is also another threat to the supermarket industry s their long trading hours and prominent locations. Most convenience store are located along the main streets of regional and city area.

Market segmentation
Major market segmentation
Market segment Share
Females 65%
Males 35%
The supermarket industry is mainly marketed toward females from the fact that women have traditionally been viewed as the primary grocery shoppers within a household. The growing number of women returning to the workforce has affected the industry. Male’s shopper that do supermarket groceries shopping...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Supermarket Industry Analysis
  • Mining Industry in Australia Essay
  • Supermarket Essay
  • Food Industry Australia Essay
  • Essay on Supermarket
  • Essay about Supermarket
  • Automotive Industry Polices: Australia & Japan Essay
  • Attractiveness of the Domestic Aviation Industry

Become a StudyMode Member

Sign Up - It's Free