Costco 4% market share and growing
Costco first entered the Australian market in 2009 and now has 15 warehouses and 1.5 million members. The US retailer operates a membership model costing $60 per year and this has proved successful in increasing loyalty and incentivising shopping trips to get the savings to offset the annual membership fee.
Shoppers are increasingly seeking promotions and limiting treats to manage the cost of living
Rising inflation and interest rates in Australia are influencing supermarket shopping habits, with cost-of-living pressures driving consumers to adopt resourceful strategies. This “new normal” includes a focus on value, where 60% of shoppers actively seek promotions, and 42% opt for cheaper cuts of meat. Many are limiting discretionary purchases, with a growing trend towards limiting …
Coles growth in international foods
Coles has seen a trend of customers eating out less due to cost of living pressures, which has fuelled the growth of meals at home and also ‘fake-away’ where customers home cook takeaway options.
Calls for rules to prevent supermarket majors from land banking.
IGA calls for rules to prevent major supermarkets from land banking to prevent competition.
Easter Weekend should bring good demand for berries.
Easter Weekend should see good demand for Berries before the school holidays, with limited supply across Blueberries and Strawberries. Raspberries and Blackberries continue to move sideways with the transition from Southern Production to the North.
Low cost online retailers adding pressure to Australian Retailers.
TEMU and SHEIN (online Retailers) are putting pressure on Traditional Retail in Australia.
Demand for strawberries flatlines, as raspberries ramp up.
Demand for strawberries has flatlined post-back-to-school, blueberries from New Zealand have been stop-start due to biosecurity clearance timelines, and raspberries are ramping up.
Consumer confidence bucks the trend and rose ahead of Black Friday/Cyber Monday sales
Last week Roy Morgan’s consumer confidence survey found confidence rose 0.4% ahead of the Black Friday/Cyber Monday sales weekend (24th of Nov to 27th of Nov). Black Friday & Cyber Monday is a tradition from the US where online retailers offer big discounts however, we are seeing brick and mortar retailers also take up this marketing initiative offering discounts to shoppers in a bid not to miss out on revenue.
Blueberry and strawberry volume and demand decreases as we see a spike in raspberries and blackberries towards Christmas.
Blueberry and Strawberry volume and demand have been flat across the week and are expected to continue. Raspberries and Blackberries continue to increase in volume in the coming weeks ahead of last year’s volume curve leading into Xmas.
Woolworths Supermarket Q1 results
Woolworths grew sales by 6.4% in Q1 this is due to item growth despite a moderation in inflation of 2% compared to year ago, this is driven by deflation in Fresh Produce and Meat categories, Fruit and Veges declined -12% due to improved growing conditions coming out of La Nina and flooding.
