Aldi threat to grocery chains as Woolworths sales tipped to dip

    The Australian
    July 30, 2015


There could be more bad news in store for Woolworths, the nation’s biggest supermarket chain, after it was whacked by shoppers for its poor-quality fresh food on offer and relatively higher prices.

Sales are expected to slow at Woolworths at a faster rate than at its rivals, which could threaten the turnaround by the new chief executive when one is appointed to replace outgoing Woolies boss Grant O’Brien.

And once again, the biggest threat to Woolworths, and the other grocery chains, is coming from the rapacious Aldi.   

German supermarket discounter Aldi has been labelled as “unstoppable’’ and its customers more loyal than any other, while flat like-for-like sales at struggling supermarket giant Woolworths is expected to continue for some time. Shoppers rank it last among the nation’s leading grocery chains when it comes to high quality fresh offerings, a UBS survey reports.

UBS surveyed 1000 shoppers across Australia about their spending habits, intentions and preferences in relation to the major supermarkets and US warehouse group Costco, and the results have underlined the huge threat Aldi now poses to all supermarkets across the $90 billion grocery sector.

As part of the survey, UBS interviewed Aldi, Coles, Woolworths and IGA shoppers and asked them their views across a range of store attributes for their main shop.

In an overall ranking, Coles was ranked first by Coles shoppers across areas such as fresh, efficiency, prices and reward card benefits while Aldi was ranked second and Woolworths third.

But across key metrics, the privately owned Aldi was seen to trounce the much bigger Woolworths and Coles, in the eyes of their own Aldi shoppers.

“There continues to be strong support from shoppers for a high quality fresh offering, with our respondents ranking Aldi best, then IGA (independent chains), Coles and Woolworths last,” UBS said.

“Secondly, it is critical that a supermarket’s value proposition resonates with shoppers. Aldi is the clear leader here, with Woolworths coming last and getting worse. Finally, shoppers are generally not loyal and have a growing propensity to cross shop, driven by greater choice and improved technology.”

A spokesman for Woolworths said: “Woolworths acknowledged at our investor day in May that we have work to do. Since this survey was taken in March, we’ve invested more than $170 million to lower prices … and have increased team hours in our stores. These changes are already making a difference and we are making good progress toward fixing the issues identified by us at that time.”

UBS said: “Excluding Aldi, for which we have upgraded our industry model numbers, the market will grow at 2.7 per cent suggesting flat like-for-like for the traditional — Coles, Woolworths, IGA — chains.

“By retailer the rate of share loss is expected to accelerate at Woolworths while Aldi/Coles should maintain momentum. We continue to believe it will take Woolworths longer and cost more money to turn around, suggesting further downside.’’

Please open more Aldi supermarkets.      [smiley=thumbsup.gif] 

wrote on Jul 30^th, 2015 at 9:19am:

Please open more Aldi supermarkets.      [smiley=thumbsup.gif]

please send more money to Germany!


fool

longweekend58 wrote on Jul 30^th, 2015 at 9:28am:

wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool

What's wrong with Germany having money?

Don't you want the Germans to travel, for example?

Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020."

http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view=

http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf

greggerypeccary wrote on Jul 30^th, 2015 at 9:34am:

longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf

so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under.

longweekend58 wrote on Jul 30^th, 2015 at 9:48am:

greggerypeccary wrote on Jul 30th, 2015 at 9:34am: longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under.

I'm a great fan of Aussie companies.  The more the merrier.

I'm also a great fan of tourism dollars coming into Australia from other countries.

I'm also a great fan of Australia exporting to other countries.

If you want all Australians to only buy Australian made and Australian owned, it would have to work the other way as well.

That is, no other country in the world would buy anything from Australia - they would have to buy local, just like we do.

To want it any other way, you would have to be a colossal hypocrite.

You're not a hypocrite are you, Longy?

sadly they will kill off IGA before the big guns....

and my local IGA always locally owned was doing the shopping and delivering it free.. long before anyone else.....

it saddens me to see another local bite the bullet because of a foreigner...

.its funny I wonder how crook would feel if ALDI was CHINESE owned... I notice they dont care for Chinese buying the farm or local houses........

crook I would be glad if you could explain the difference too me..

because I cant see it..

The difference is the price.  How is it Aldi can do it cheaper than the others?.  They must be doing something right.   :)   

wrote on Jul 30^th, 2015 at 10:35am:

The difference is the price.  How is it Aldi can do it cheaper than the others?.  They must be doing something right.   :)

This can happen by having few stores in selected areas. It's the volume of business.

I bet that if Aldi had a store of matching size beside each Coles and Woolworths their prices would go up.

I also suspect the product range is smaller at Aldi.

wrote on Jul 30^th, 2015 at 10:35am:

The difference is the price.  How is it Aldi can do it cheaper than the others?.  They must be doing something right.   :)

It's quite simple crook. They have a streamlined business model and offer value for money and choose not to rip off the consumer !!

Nothing stopping the others following in their footsteps but they would prefer to ripoff the consumer instead of offering value for money.

cods wrote on Jul 30^th, 2015 at 10:23am:

sadly they will kill off IGA before the big guns.... and my local IGA always locally owned was doing the shopping and delivering it free.. long before anyone else..... it saddens me to see another local bite the bullet because of a foreigner... .its funny I wonder how crook would feel if ALDI was CHINESE owned... I notice they dont care for Chinese buying the farm or local houses........ crook I would be glad if you could explain the difference too me.. because I cant see it..

and how much of the canned slop in IGA is sourced from china ? You really kid yourself.

greggerypeccary wrote on Jul 30^th, 2015 at 10:17am:

longweekend58 wrote on Jul 30th, 2015 at 9:48am: greggerypeccary wrote on Jul 30th, 2015 at 9:34am: longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under. I'm a great fan of Aussie companies.  The more the merrier. I'm also a great fan of tourism dollars coming into Australia from other countries. I'm also a great fan of Australia exporting to other countries. If you want all Australians to only buy Australian made and Australian owned, it would have to work the other way as well. That is, no other country in the world would buy anything from Australia - they would have to buy local, just like we do. To want it any other way, you would have to be a colossal hypocrite. You're not a hypocrite are you, Longy?

your'e a 'fan', but not the type that would go to the game or pay any money to support your team.  You are a fan of aussie business, but not big enough of one to actually support them.

Quote:

sadly they will kill off IGA before the big guns.... and my local IGA always locally owned was doing the shopping and delivering it free.. long before anyone else.....

Interesting to note that here in Perth, 2 IGA's have closed in the past several months - one at Belmont Forum shopping centre close to where I live and another at Armadale City shopping centre.

Both locations are going to become Aldi's (but not until the middle of next year).

longweekend58 wrote on Jul 30^th, 2015 at 11:08am:

greggerypeccary wrote on Jul 30th, 2015 at 10:17am: longweekend58 wrote on Jul 30th, 2015 at 9:48am: greggerypeccary wrote on Jul 30th, 2015 at 9:34am: longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under. I'm a great fan of Aussie companies.  The more the merrier. I'm also a great fan of tourism dollars coming into Australia from other countries. I'm also a great fan of Australia exporting to other countries. If you want all Australians to only buy Australian made and Australian owned, it would have to work the other way as well. That is, no other country in the world would buy anything from Australia - they would have to buy local, just like we do. To want it any other way, you would have to be a colossal hypocrite. You're not a hypocrite are you, Longy? your'e a 'fan', but not the type that would go to the game or pay any money to support your team.  You are a fan of aussie business, but not big enough of one to actually support them.

Incorrect.

I support many of them every single day.

Keep trying.

greggerypeccary wrote on Jul 30^th, 2015 at 11:52am:

longweekend58 wrote on Jul 30th, 2015 at 11:08am: greggerypeccary wrote on Jul 30th, 2015 at 10:17am: longweekend58 wrote on Jul 30th, 2015 at 9:48am: greggerypeccary wrote on Jul 30th, 2015 at 9:34am: longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under. I'm a great fan of Aussie companies.  The more the merrier. I'm also a great fan of tourism dollars coming into Australia from other countries. I'm also a great fan of Australia exporting to other countries. If you want all Australians to only buy Australian made and Australian owned, it would have to work the other way as well. That is, no other country in the world would buy anything from Australia - they would have to buy local, just like we do. To want it any other way, you would have to be a colossal hypocrite. You're not a hypocrite are you, Longy? your'e a 'fan', but not the type that would go to the game or pay any money to support your team.  You are a fan of aussie business, but not big enough of one to actually support them. Incorrect. I support many of them every single day. Keep trying.

'support'.  by waving as you walk past on the way to aldi?

Quote:

'support'.  by waving as you walk past on the way to aldi?

He'd have a long walk... Greg is in WA and there won't be any Aldi stores opening here until the middle of next year.  ;D

longweekend58 wrote on Jul 30^th, 2015 at 12:03pm:

'support'.  by waving as you walk past on the way to aldi?

That would be very difficult.

There are no Aldi stores in WA.

http://www.perthnow.com.au/news/western-australia/aldi-australia-confirms-wattle-grove-store-to-open-in-perth-late-2016/story-fnhocxo3-1227416448751

longweekend58 wrote on Jul 30^th, 2015 at 12:03pm:

'support'.  by waving as you walk past on the way to aldi?

We all support Australia every day in many ways. It's not just about where you buy your grocery supplies.

Point me in the direction of a servo or a bank that doesn't rip us off, I'll be first in line and I couldn't care where the profits went.

greggerypeccary wrote on Jul 30^th, 2015 at 11:52am:

longweekend58 wrote on Jul 30th, 2015 at 11:08am: greggerypeccary wrote on Jul 30th, 2015 at 10:17am: longweekend58 wrote on Jul 30th, 2015 at 9:48am: greggerypeccary wrote on Jul 30th, 2015 at 9:34am: longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf so not a great fan of aussie companies?  I guess you are constantly delighted when an aussie company goes under. I'm a great fan of Aussie companies.  The more the merrier. I'm also a great fan of tourism dollars coming into Australia from other countries. I'm also a great fan of Australia exporting to other countries. If you want all Australians to only buy Australian made and Australian owned, it would have to work the other way as well. That is, no other country in the world would buy anything from Australia - they would have to buy local, just like we do. To want it any other way, you would have to be a colossal hypocrite. You're not a hypocrite are you, Longy? your'e a 'fan', but not the type that would go to the game or pay any money to support your team.  You are a fan of aussie business, but not big enough of one to actually support them. Incorrect. I support many of them every single day. Keep trying.

longloser really means supporting the aussie shareholders greed !!

greggerypeccary wrote on Jul 30^th, 2015 at 9:34am:

longweekend58 wrote on Jul 30th, 2015 at 9:28am: wrote on Jul 30th, 2015 at 9:19am: Please open more Aldi supermarkets.      [smiley=thumbsup.gif]  please send more money to Germany! fool What's wrong with Germany having money? Don't you want the Germans to travel, for example? Australian Tourism: "There was $0.910 billion in total expenditure from Germany in 2010. The Tourism Industry Potential estimates that Germany has the potential to grow to between $1.902 billion and $2.316 billion in total expenditure by 2020." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3401.0Feature%20Article1Dec%202010?opendocument&tabname=Summary&prodno=3401.0&issue=Dec%202010&num=&view= http://www.tourism.australia.com/documents/ABSarrivalsApr2015.pdf

Profits from Aldi do NOT go to "Germans" - aside from immediate members of Germany's wealthiest family

NO-one outside of this family owns (or can own) Aldi shares
Aldi is NOT listed on any stock exchange

Unlike the Australian owned Coles and Woolworths - where ANY Australian can become shareholders, including Australia's many superannuation funds

The VAST bulk of Coles and Woolworths flows back to ordinary, everyday Australians - through one channel or another