Presentation: Australian Supermarket Industry Analysis

This presentation provides an in-depth analysis of the Australian supermarket industry, focusing on its structure, key players (Woolworths, Coles, Aldi, Costco, and Amazon), and competitive dynamics. It examines industry drivers, including food and non-alcoholic beverage consumption, and explores the impact of mergers and acquisitions on market consolidation and competition. The presentation delves into the challenges faced by the industry, such as employment reductions, theft, and the emergence of online grocery stores, while also highlighting opportunities presented by new technologies for enhancing service delivery and customer engagement. Finally, it forecasts future trends, predicting the central role of technology and innovation in shaping competition and customer experience, and concludes with recommendations for industry players to adapt to these changes and maintain competitiveness. This presentation is available on Desklib.

Structure and Acquisition Case
of Australian Supermarket
Name
Institution

Scope of the Presentation
The presentation will focus on;
 Background information
 Industry overview
 Drivers of the industry growth
 Market
 Key competitors and products
 Competition between the players merger and
acquisition
 Opportunities & challenges and the future of
the industry

Introduction
The grocery industry in Australia is facing a
stiff competition (Bankwest 2017).
Impact
 it has compelled supermarkets to cut down
prices to gain a competitive edge
 Big player influence price reduction
 Growth of private range labeling

Cont.…
Merger and Acquisition has contributed to
growth of Woolworths and Coles
The introduction of Amazon has reshaped the
competition of the industry
Strategy
- There is a need for every business to improve
service delivery such as parking space and low
prices (Gleich 2017).

Industry Overview
Australian Supermarkets and Grocery Stores’
competition is hinged on the prices.
The largest supermarkets— Woolworth and
Coles are battling to control market share of
$100 billion market.
small players have been downsizing due to high
competition
small food retailers have been experiencing
raise in revenue. In 2017, they had an increase
in revenue by 3.8 percent compared to 7.5
percent decline in 2016

General structure of the
Supermarket/Grocery Industry

Drivers of the IndustryFood and non-
alcoholic
beverages are the
main drivers of the
industry growth.
Inflation of food and
non-alcoholic
beverages have
been rising at
slower pace of 4%
for the past five
years up to
September 2017

Key Competitors
Major Players- Woolworth and Coles
supermarkets
Other emergence- Aldi, Kauflad, and Costo
have intensified the competition in industry
(Bankwest, 2017).
Amazon is also expected to intensify
competition in the industry.

Products
Most common products in these retail stores
include;
 Beverages
 tobacco products
 meat products
 fresh vegetable and fruits
 bakery products
 packed foods, dairy products, and toiletries

Competitors between major Players
The trajectory of competition in the industry
is anticipated to move upwards due to a
number of reasons significantly.
Woolworth and Coles- focus on private
labelling of products to counter competition
Costco- has adopted price competing strategy
by reducing shelf prices of about 4100 items.
The big players stick to the generic name
brands in order reduce prices relative to the
players

Merger and Acquisition
rationale for mergers and acquisitions include;
 market consolidation
 gaining economies of scale, market expansion
 improving bargaining power from suppliers
 and gaining operation efficiency (Brainbridge 2012,
p. 148). All the aforementioned reasons are
underpinned on sustaining the level of competition
and increasing generation of revenue.
The Australian government has tightened
regulations on mergers and acquisitions

Challenges
The following are some of the challenges;
 reduction of the employment has resulted
increased theft due to less supervision.
 incapability of the system to withstand business
growth and heightened price competition (Lopez,
2015, p.59).
 The emergence of the “online-only grocery dark
stores
 inability of the small supermarket to invest in new
technological systems (Hallak et al., 2018, p.261).