Food fight: Fierce price competition has benefited consumers but eaten into profit IBISWorld Industry Report G4111 Supermarkets and Grocery Stores in Australia June 2014 Brooke Tonkin 2 About this Industry 14 Demand Determinants 29 Operating Conditions 2 Industry Definition 15 Major Markets 29 Capital Intensity 2 Main Activities 16 International Trade 30 Technology & Systems 2 Similar Industries 17 Business Locations 30 Revenue Volatility 2 Additional Resources 31 Regulation & Policy 19 Competitive Landscape 3 Industry at a Glance 32 Industry Assistance 19 Market Share Concentration 19 Key Success Factors 34 Key Statistics 4 Industry Performance 19 Cost Structure Benchmarks 34 Industry Data 4 Executive Summary 21 Basis of Competition 34 Annual Change 4 Key External Drivers 22 Barriers to Entry 34 Key Ratios 5 Current Performance 22 Industry Globalisation 8 Industry Outlook 10 Industry Life Cycle 35 Jargon & Glossary 24 Major Companies 24 Woolworths Ltd 12 Products & Markets 25 Wesfarmers Limited 12 Supply Chain 26 ALDI Stores Supermarkets Pty Ltd 12 Products & Services 26 Metcash Limited www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia June 2014 About this Industry Industry Definition Supermarkets and grocery stores retail a range of groceries and food lines, including fruit and vegetables, bread, cigarettes, canned goods, toiletries, dairy Main Activities The primary activities of this industry are goods, delicatessen items and cleaning goods.…
Let’s talk about fashion for example. Today, we wear apparel made or produced in the U.S, such as Nike, Levi’s, Under Armour, and so on, which are very popular in Australia. However, these brands were not so known in Australia back in the 60’s. When television became famous, the…
As is known to all, Woolworths and Coles are the two big supermarkets in Australia and plays a very important influence for the Australian economy.…
From the start of 20th Century to the early 21st Century, Australia has gone from a European centric nation to a multicultural superpower. With the introduction of many different ethnicities and cultures throughout the years, not only have our values, attitudes and beliefs evolved to accommodate the amount of variety, but many other things have evolved too. One of the most important things to have been brought to the country of Australia is the wide variety of different cultural foods and cuisines introduced by Italians, Indian, Chinese and Middle Eastern to name a few. As more and more ethnicities entered Australia looking for work, emigrating and immigrating, the evolution of street markets, restaurant’s and the take away market boomed as…
An appreciating dollar has meant consumers have obtained more purchasing power as foreign imports have flooded the Australian market. Through increased purchasing power consumers can choose from a larger variety of goods offered…
In this article Michael Baker discusses the livelihood of small retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of a duopoly. It is evident that Woolworths and Coles engage in predatory pricing in an attempt to eliminate independent retailers from the market. This article discusses recent efforts made by the Australian government and the Australian Competition and Consumer Commission to reduce predatory pricing and, thus, encourage competition in the marketplace in an attempt to relieve the financial strain that would undoubtedly be felt by consumers if the Woolworths/Coles duopoly ruled the marketplace without the presence of independent retailers.…
Living and studying in Australia for the past 11 months, going to do my grocery shopping at Coles or at Woolworths has become part of my routine. And because it is such an ordinary thing to do, we tend to forget that we make part of a much bigger picture, and are contributing to several factors regarding the Australian economy. However, this race for the best has its advantages and disadvantages, and of course, this is affecting us as well.…
Should the Australian government continue to permit live exports? No! Our government needs to ban the exporting of live animals to ensure that no single animal is treated inhumanely. We cannot be sure that humane slaughtering will occur in importing countries, many animals die in transit under horrific conditions and the economic impact of a total ban on live exports is not that bad in the great scheme of things.…
Australian businesses have expanded overseas for the last few decades. Whether they are successful at doing so or not depends on many external environmental factors surrounding them in the foreign country. For Sumo Salads, which is an Australian brand that was established back in 2003 by a group of people who wanted to shift the lifestyle of Australians to a healthier alternative, they must understand how these factors will have a great influence on them if they were to expand to the United States of America (USA). Sumo Salads is currently present in Australia, New Zealand, London and Dubai as of the moment (Sumo Salads, 2012). These countries were fast to pick up on the fad of healthy eating due to the world’s increasing obesity rate. Because of this, by expanding Sumo Salads into one of the world’s highest obesity rated countries, Sumo Salads can be in for another success. External factors that they would face would be legal factors, social influences and trends, competition and the effect of seasonal factors.…
Australia has 3% of the world cattle inventory and is the world's seventh largest beef producer.…
Australian diets are impacted on by American chain-restaurants such as KFC, McDonalds, and Subway, all of which have chains located in Australia. These chains have turned Australian diets that are of no difference to Americans, and have introduced a wide variety of American food products. This means that Australians have a higher number of options to choose from, along with their own variety of local foods, such as lamingtons and meat pies. America’s chains in Australia have included some big-brand and highly popular names, such as McDonalds, KFC, Subway,…
The Australian government ensures that Australia has a secure and successful food industry by ensuring our economy remains stable. This ensures that Australia has a stable flow of food products available for the community. As well as having a large and stable economy, Australia has a 'market economy'. This implies that the production and distribution of goods and services happens predominantly through private enterprise, and price is…
There are many exporters who started their business from different countries n they being the origin of other country as Mariano, one among the same, Mariano Ferreyra, an Argentinean-Australian who has been resident in Australia for a number years, found this some what surprising. Here are the Issues on which Mariano over looked 1) He has noted some of the similarities in lifestyles between Australian and his fellow Argentineans, and having traveled to Brazil he could see similarities there as well. 2) Noted…
Woolworths has many trading divisions in Australian and New Zealand, which cover wide range of industries such as supermarkets and petrol to ensure its EBIT growth. The sites of supermarkets are across Australian and New Zealand located in most of the shopping centers, so it is convenient for customers to find their nearest one, which can increase customers’ satisfaction. In addition, the expending global souring and international logistics capabilities ensure the stability of supply chain. It provides cost advantage through other…
The economy of South Korea is ranked eleventh in the world and third among Asian countries, thus unquestionably South Korea consumer has a certain buying power and might be a potential market for Australia. From Department of Environment and Primary Industries 2012, with a GDP of $1.46 trillion (USDA, 2011), the economy of South Korean was ranked 13th largest in the world in 2010. Approximately 6.1% economy inclined in 2010 and it brings per capital of buying power about $ 30,000 USD (CIA, 2011). The demand for the healthy products and with high quality food is increasing in South Korean market. Owing to the climatic reasons and the capacity of the land is limited in South Korea to expand the farms and wine vineyard thus Australia has been one of main exporter to South Korea.…