The latest figures published by Deutsche Bank show that Aldi’s increasing prominence in the Australian FMCG market has resulted in a fightback by national retailers Woolworths and Coles, as the nation’s biggest domestic grocers trim the prices of their private label products, smh.com reports.
Aldi, which joined Australia’s FMCG market in 2001, has steadily achieved a strong foothold in its market. It is said to have capitalised on the collapse of discount chain Franklins.
Deutsche Bank surmises that private label FMCG prices fell in Australia by fell by 6.1 per cent during 2015’s second quarter – the steepest drop in 18 months.
Moreover, the price of branded products went up by 1.3 per cent during the same three-month period. In Australia, as in other markets, the German chain deals predominantly in private label produce.
Michael Simotas of Deutsche Bank said, "If you think about where the overlap is with Aldi, they have to make sure their pricing is reasonably sharp.
“The shopper going into Aldi is a shopper who cares mostly about price – what brings them through the door is a focus on value. By sharpening their private label pricing, Coles and Woolworths are hoping to stem that loss of customers.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly.
