A new study from Roy Morgan Research shows Aldi is continuing to win over more Australian supermarket shoppers.
According to the study, as of December 2015, Aldi had a 12.1 per cent market share of the Australian supermarket grocery market. This is an increase on the 11.6 per cent share it held when Roy Morgan Research last studied Australian supermarkets in March 2015.
Market share over time (dollar value): Australian supermarket grocery market
Source: Roy Morgan Single Source (Australia), January 2007–December 2015, average 12-month sample = 14,793. Base: Australian grocery buyers 14+, weighted to households
Woolworths loses some customers
Woolworths loss some of its customers between March 2015 and December 2015 with its market share dropping from 38.5 per cent to 37.3 per cent. The supermarket does however still retain the largest share of the market.
Coles gained some customers with its share jumping from 31.8 per cent to 32.5 per cent. IGA’s share remained relatively stable with the independent chain holding a 9.7 per cent market share.
How many Australians are shopping at which supermarkets?
In an average four-week period, 5.3 million Australian consumers shop at ALDI, 10.5 million visit Woolworths, 10 million go to Coles and just over 4 million enter a IGA. Almost 4 million frequent other supermarkets. Some 37.1 per cent of these shoppers visit at least one Coles, one Woolworths and one other supermarket during this average four week period.
Supermarket customer penetration over time
Source: Roy Morgan Single Source (Australia), January 2007–December 2015. Average 12-monthly sample size = 14,691. Base: Australian grocery buyers 14+
Analysis: Michele Levine, CEO of Roy Morgan Research
Michele Levine, CEO of Roy Morgan Research, said with Aldi’s expansion into South Australian and Western Australia underway there is little doubt the supermarket with continue to poach more Australian grocery shoppers.
“Obviously, the German chain has a long way to go before it threatens Woolworths’ and Coles’ share of the market, but then again, Rome wasn’t built in a day,” Levine said.
“Meanwhile Woolworths’ dollar share of the market has declined once again — not so much as to knock them off top spot, but still cause for concern, especially given that Coles is showing signs of catching up,” she said.
“As they do with dollar market share, Woolworths and Coles have the largest customer bases by far, but with just one in five grocery buyers shopping exclusively at one supermarket, neither of these heavyweights should get too comfortable. Although ALDI has a much smaller dollar share of the market, it is already punching above its weight in term of customer volume and has more than doubled shopper numbers since January 2007,” Levine continued.
“With so much choice available to them, Australian supermarket shoppers are in a position of power. As Woolies learnt last year with its disastrous ANZAC campaign, and as ALDI is discovering now after refusing to heed the call to phase out caged eggs (as Woolworths and Coles are doing), the consequences of alienating consumers are very real – and very public,” she said.
