Survey looks at Aussie supermarket moves

10 July 2015

A recent UBS/AFGC survey on Australian supermarkets makes some very interesting predictions on the sector over the Ditch.

It finds that the sector is entering a period of lower growth and lower returns, with increased competition driving structural change.

It says discounters are changing the market, impact on retailer and customer behaviour; retailer and supplier performance is expected to “broadly converge” as the retailer profit is now maxed out; suppliers are giving less to the retailers as they have less to give; with no clear strategy to win, suppliers and retailers are experimenting with a number of strategies.

It predicts the probability of a price war in grocery retailing is increasing and will be partly driven by how far Coles can extend its lead over Woolworths. For a full copy of the report email Kira Mikelatos.