Woolworths Losing Market Share to Coles and Aldi

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The latest figures show that Woolworths is losing ground to competitors Coles, Aldi and Costco.
Woolworths’ data shows that same store food and liquor sales went backwards by 9 per cent.
This contrasts with the 5.9 per cent at Wesfarmers-owned Coles which reported a record number of transactions over Easter.
The latest numbers come after data showing Woolworths sales had declined 0.6 per cent in the December quarter 2016, 1 per cent in the September quarter and 0.7 per cent in the June quarter 2016.
Woolworths has been under pressure from lowering its margins, lower average prices and aggressive competition on price.
Coles has grown faster than Woolworths for 27 consecutive quarters,
As a result, the gap in market share between Australia’s two largest grocery retailers has fallen from 12 per cent at the peak in 2008 to around 8.6 per cent.
At the same time, Aldi is expanding and opening new stores around Australia.

Woolworths plans to throw another $150 million into lowering grocery prices to combat competitive market conditions.
“We are in the first year of a three to five year journey to restore sales momentum and will continue to invest where required to get our customers to put us first,” Woolworths said in its statement to the market.
Woolworths has now embarked on a group-wide strategic review.

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