Food retailing in Australia ‐ three retailers, three strategies

Abstract

Considers the structure of grocery retailing in Australia and, in particular, presents and contrasts the development strategies being pursued by the three major retailers in this highly concentrated market. Woolworth’s, the market leader, is a classic corporate recovery story and is emerging as one of the most impressive food retailers in the world. By contrast, the grocery businesses of Coles Myer, Australia’s leading retailer and one of the largest retailers in the world, are under intense pressure from both a rejuvenated Woolworth’s and the company’s own internal weaknesses, many of which are a legacy of a long period of unchallenged market dominance. Coles now faces the challenge of reinventing itself and is taking an approach quite different to that of Woolworth’s. Franklins is number three in Australian grocery retailing and its origins are as a price aggressive discounter. However, as Franklins’ own market position has come under pressure, the company is responding by moving towards more direct competition with Coles and Woolworth’s.

Citation

Treadgold, A. (1996), "Food retailing in Australia ‐ three retailers, three strategies", International Journal of Retail & Distribution Management, Vol. 24 No. 8, pp. 6-16. https://doi.org/10.1108/09590559610150348