Supermarkets: January 2011

The competitive landscape over the medium term has undoubtedly intensified. Although Coles’ potential for significant market share gains and margin improvement is evident, they will continue to be countered by a slick and professional Woolworths, a rising Aldi, and an expanding Costco. Independents and Metcash are the meat in the sandwich. Consumers are the beneficiaries. Structural shifts around price deflation, private label and brand rationalisation will continue to occur “UK style” and to that end, the greatest profit upside evident in the value chain is with those holding scale supermarket operations.

For further information please contact Jodie Baker & Lorraine Robinson