Lidl to set up first Australian stores in 2015
Lidl are currently sourcing a Melbourne location for their Australian expansion next year, according to ChannelNews.
Aldi has already forced Woolworths and Coles to change their business models by focusing on cheaper products and less brands to compete, according to analysts.
Woolworths confirmed to the MailOnline that prices are coming down not only at their supermarket but across the sector. 'Strong competition in the grocery sector has driven 19 consecutive quarters of price deflation, which is a great thing for our customers.'
The price of groceries is tipped to drop as competition for customers escalates. Experts say that prices will drop across the board when Australians are offered more choice, with more international supermarkets considering entering the Australian market.
The average Australian household saved $445 in groceries last year - the equivalent of two weeks free groceries, according to news.com.au.
German discount supermarket chain Aldi is now the third-biggest Australian supermarket chain, grabbing 10.3 per cent of the market by December 2013. Woolworths has 39 per cent of the market and Coles has 33.5 per cent of the market, while IGA has 9.5 per cent of the market.
Aldi claimed in a press release last month that their prices were 25 per cent less than those of Woolworths and Coles. 'Aldi is Australia’s only ‘hard discount’ supermarket operator.
'Surveying by national consumer organisation, CHOICE, has shown that a comparable basket of goods at Aldi is in the order of 25% cheaper than at one of the major supermarket chains,' Aldi said.
Mr Reid says Aldi’s growth showed it was possible to muscle in on the market long dominated by just Coles and Woolworths. ‘While Aldi’s increase in market share over the last eight years may seem like a slow burn, they’ve actually secured a sizeable chunk of the $82 billion grocery market,’ he said.
Dr Merrett says that Australian products will pay for the heavy price cuts.
‘The Aussie food producer gets screwed in this. Their products are increasingly being considered replaceable. People are pressed for time and don’t have a lot of money'
‘If the consumer is after a cheaper product, they’re going to come out the winner in the supermarket war. But consumers who value better innovation, better quality and Australia products will be disappointed.’
Source: dailymail.co.uk
