Roy Morgan Research
May 17, 2017

Aldi hits new high in supermarket wars

Topic: Press Release
Finding No: 7234
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Aldi’s share of Australia’s $90 billion supermarket budget continues to grow, new supermarket expenditure data shows. Since Roy Morgan last revealed the state of Australia’s grocery market six months ago, Aldi has continued to increase its market share, while Coles is steady and both Woolworths and IGA have declined. 

The latest Supermarket Currency report from Roy Morgan Research shows Australia’s grocery buyers spent $90.3 billion at supermarkets during the 12 months to March 2017. Of that, $32.2 billion was spent at Woolworths (35.7 percent of the market, down from 36.3 percent in the year to September 2016) and $30.0 billion at Coles (33.2 percent, unchanged).    

Aldi claimed $11.9 billion of grocery buyers’ expenditure during the year (13.2 percent, up from 12.5 percent), stretching its lead over IGA which fell to $8.4 billion (9.3 percent, down from 9.8 percent). 

The combined share of other supermarkets rose from 8.1 percent to 8.6 percent, or $7.8 billion.

Shares of the $90.3 billion spent at Supermarkets in 12 months to March 2017

Source: Roy Morgan Single Source Australia, April 2016 – March 2017, sample n = 11,923 Australian Grocery Buyers 14+.

Michele Levine, CEO – Roy Morgan Research, says:

Block Quote

“With over $90 billion a year spent at supermarkets, every 0.1 percentage point change in market share is equal to nearly a hundred million dollars in gross revenue lost or gained.

“With German discount chain Lidl and its big box ‘hypermarket’ parent Kaufland, as well as Amazon Fresh, all rumoured to be setting up shop in Australia this year, supermarkets need to a firm grasp of their market shares, and strengths and weakness in different grocery categories and between different types of consumers.

“The latest research shows Aldi has again hit a new high and cemented its third spot ahead of IGA. Meanwhile Coles in now just 2.5 percentage points behind Woolworths, having narrowed the gap from eight percent over the last few years.

“Aldi’s growth in market share reflects its continued strong performance in delivering customer satisfaction. In 2016, Aldi won its fourth consecutive Roy Morgan Customer Satisfaction Award for Supermarket of the Year. The latest data shows Aldi retains the lead among the Big Four supermarket chains, satisfying over 90 percent of its customers overall, with—perhaps surprisingly—particular strength in meat and fresh fruit and vegetables, as well as the general merchandise which is a distinguishing feature against competitors.  

“Also, as Roy Morgan revealed in March, Aldi is now the country’s most-read supermarket catalogue, with 5.1 million Australians having a look-see about its special offers in an average week. With industry-leading satisfaction and catalogue reach, we would expect Aldi’s market share to continue to climb. Coles, Woolworths and IGA, as well as smaller chains, will need to work to safeguard their shares against an ascendant Aldi and any new game-changing arrivals.”    

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Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size Percentage Estimate
40% – 60% 25% or 75% 10% or 90% 5% or 95%
1,000 ±3.0 ±2.7 ±1.9 ±1.3
5,000 ±1.4 ±1.2 ±0.8 ±0.6
7,500 ±1.1 ±1.0 ±0.7 ±0.5
10,000 ±1.0 ±0.9 ±0.6 ±0.4
20,000 ±0.7 ±0.6 ±0.4 ±0.3
50,000 ±0.4 ±0.4 ±0.3 ±0.2

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