Supermarkets in Australia

PROSPECTS

Growing move to e-commerce but in-store initiatives remain the focus

Despite the growing share of groceries sold via e-commerce, the channel remains small in modern grocery retailing. Many consumers remain uncertain about the benefits and reliability of such grocery services.

Pricing disputes despite new code of conduct reforms

In March 2019, the government accepted recommended reforms to the Food and Grocery Code of Conduct, following an independent review. The code promotes greater transparency and fairness in price negotiations between suppliers and grocery retailers or wholesalers.

New bag strategies by major supermarkets reduce their environmental footprint

A ban by major retail chains has led to a huge reduction in the number of plastic bags in circulation. Indeed, Coles’s and Woolworths’s adherence to the ban is estimated to have led to 1.

COMPETITIVE LANDSCAPE

First “grocerant” offers dining convenience for busy shoppers

Coles aims to gain a competitive edge by opening the first “hybrid” supermarket in the Melbourne suburb of Tooronga. Australia's first “grocerant” (food hall in a supermarket) is the result of Coles’s partnerships with independent food retailers.

Shift to more environmentally-friendly promotions in face of criticism of plastic waste

The environmental factor, clearly evident in the ban on plastic bags by major retail chains, is extending its influence on supermarkets. Woolworths and Coles have benefited strongly from marketing initiatives based on licensed collectibles.

Supermarket giants look beyond pricing to improve their quality and CSR positioning

Supermarket giants Woolworths and Coles are looking to move beyond price wars, which were informed and exacerbated by growing competition from Aldi. They aim to reduce their focus on pricing as a competitive strategy.

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