The new No. 1 supermarket in Australia has been revealed
The battle to be the No 1 supermarket in Australia is always going to fiercely contested, but if recent analysis from financial group Citi is anything to go by, a forerunner is already putting distance between itself and the rest of the pack.
Citi analysis puts Woolworths aisles ahead of the competition, with sales expected to grow for the next two years after Woolies shares hit two year highs.
Citi retail analysts Bryan Raymond and Craig Woolford predict Woolworths to remain ahead of competitors Aldi and Coles in the crucial like-for-like sales growth.
"The momentum in the Australian grocery industry remains clearly with Woolworths,” the note said.
“Coles and Aldi (on the eastern seaboard) are generating limited like-for-like sales growth as independents continue to decline.”
As Citi issued their analysis, an Aldi spokesman released a statement to News Corp saying they are focussed on delivering the “best possible in-store experience”.
“We constantly review our business operations and processes to ensure we continue to deliver exceptional value to our customers,” he said.
“This includes eliminating many of the costly extras associated with traditional supermarkets.”
And, as though to rub salt in the wound of Woolies’ biggest rival, UBS analysts Ben Gilbert and Aryan Norozi cut their profit forecasts for Coles based on supplier feedback.
“Coles’ strategy has become reactionary, with an over-reliance on price-based promotions and not enough focus on other value measures (including quality), albeit this is changing,” their research note said.
“Staff calibre and morale are near all-time survey lows, customer-facing metrics (such as on-shelf availability and promotions) are deteriorating and its marketing strategy is not as effective.”
What are your thoughts? Who do you shop with?