Aldi still gaining as food price inflation to ease, says survey
Food price inflation is set to ease, discount chain Aldi is still winning share from the majors and supplier margins are coming under pressure, according to the latest industry survey by Jarden and the Australian Food & Grocery Council.
Other key findings from the survey, which canvassed 57 supermarket suppliers in early October, are that market volumes are lifting and so are the number of promotions in store.
Coles boss Leah Weckert is seeking to get the rate of theft under control. Arsineh Houspian
Jarden head of research Ben Gilbert estimates Aldi sales are up mid-high teens year-on-year, gaining back lost share during COVID-19.
“Aldi is benefiting from a more value-focused shopper, larger branded offer, increased cross-shopping, rising own-brand [sales] and easing supply chain issues,” he said in a note to clients.
The majority of surveyed suppliers have increased prices over the past year (up 8.3 per cent on average); however, about half are not planning to hike prices further in 2023. But in 2024, 74 per cent expect to make more price increases, but the rate of increases will slow.
“We expect dry [grocery] inflation to moderate from 6-8 per cent today, to 3-4 per cent in 2024,” Mr Gilbert said.
It is getting harder to push through price rises, with more suppliers citing Coles as the most difficult over Woolworths.
Mr Gilbert said retailers are looking for ways to expand gross margins to help manage continuing cost pressures via price hikes, more efficient promotions, and selling higher-margin own-branded products.
Coles flagged at its full-year results that theft across its 850 stores was a major problem. The Jarden survey found one-quarter of suppliers believe Coles may have “overplayed the theft issue” and its
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