Discover the Shocking List of Woolworths' 40+ Rivals — Are You Shopping at Them Without Realizing?
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When we think of grocery shopping in Australia, the big names that typically come to mind are Woolworths and Coles. These supermarket giants have long been considered the go-to places for our weekly shop. However, Woolworths has recently claimed that the market is 'fiercely competitive,' citing over 40 competitors vying for a slice of the grocery pie. This assertion comes amid calls for increased competition to ease the cost-of-living pressures facing many Australians.
In a surprising revelation to the Australian Competition and Consumer Commission (ACCC), Woolworths listed a diverse array of businesses as competitors, from specialist cheesecake makers to newsagents and online delivery services. But how many of these so-called rivals are truly in competition with Woolworths, and are they viable alternatives for your shopping needs?
Let's delve into the curious case of Woolworths' extensive list of competitors and explore whether these alternatives are practical for the everyday shopper, especially for our savvy seniors who are always on the lookout for the best deals and services.
Specialty Stores vs. Supermarket Giants
Woolworths' list includes several highly specialized retailers, such as Joe’s Meat Market and Bush’s Meats, which are limited to a few locations in New South Wales. The Cheesecake Shop, known for its decadent desserts, is another unexpected name on the list. While it may be a household name with 230 franchised stores across Australia, its offerings are far from the comprehensive range found in a supermarket.
Experts like Sanjoy Paul, an associate professor at the UTS business school, argue that these specialized stores, with their limited turnover and niche products, should not be considered direct competitors to a supermarket behemoth like Woolworths. After all, a small shop selling a few vegetables or a cheesecake doesn't quite compare to the vast array of goods available at Woolworths.
Convenience Stores and Petrol Stations: A Real Alternative?
Woolworths also identifies petrol stations, newsagents, and convenience store chains as part of its competitive landscape. However, these outlets often lack the breadth of products found in a supermarket. For instance, a trip to a Nextra news agency might yield Christmas wrapping paper and stationery, but you won't find the essential groceries needed for your weekly shop.
Even the relationship between Woolworths and the Ampol/Foodary chain, where Woolworths' MetroGo stores were rebranded to Foodary, complicates the notion of competition. While you can find snacks and a limited selection of groceries at these convenience stores, the prices are often higher than at Woolworths, and the range is much narrower.
Online Shopping: The New Frontier
The rise of online shopping has introduced new players into the grocery market. Woolworths lists ready-made meal delivery services like Lite n’ Easy as competitors, despite these services not selling groceries per se. While convenient, these services cater to a different market segment and often come at a premium compared to supermarket prices.
E-commerce giants like Amazon are also cited as emerging competitors. Although Amazon's grocery range in Australia is still developing, its investment in distribution infrastructure signals a potential shift in the future of grocery shopping. However, as seen in the US, even a mature Amazon grocery business holds only a small fraction of the market.
The Reality for Shoppers Over 60
For our members over 60, the reality of grocery shopping competition is nuanced. While it's true that there are more options than ever before, the convenience and range offered by Woolworths and Coles often make them the preferred choice. Specialty stores and online services can complement the big supermarkets but are unlikely to replace them for the complete shopping experience.
As savvy shoppers, it's essential to stay informed about the options available. Whether it's supporting local butchers for quality meats, indulging in a specialty cheesecake for a special occasion, or taking advantage of online deals for non-perishable goods, there are ways to maximize value while navigating the competitive grocery landscape.
We encourage our readers to share their experiences. Have you found any of these so-called competitors to be viable alternatives to Woolworths or Coles? Do you prefer the convenience of a one-stop-shop, or do you enjoy the hunt for specialty items and deals? Join the conversation and let us know in the comments below!
In a surprising revelation to the Australian Competition and Consumer Commission (ACCC), Woolworths listed a diverse array of businesses as competitors, from specialist cheesecake makers to newsagents and online delivery services. But how many of these so-called rivals are truly in competition with Woolworths, and are they viable alternatives for your shopping needs?
Woolworths has told the ACCC that the grocery sector is 'fiercely competitive,' naming over 40 competitors. Credit: Shutterstock
Let's delve into the curious case of Woolworths' extensive list of competitors and explore whether these alternatives are practical for the everyday shopper, especially for our savvy seniors who are always on the lookout for the best deals and services.
Specialty Stores vs. Supermarket Giants
Woolworths' list includes several highly specialized retailers, such as Joe’s Meat Market and Bush’s Meats, which are limited to a few locations in New South Wales. The Cheesecake Shop, known for its decadent desserts, is another unexpected name on the list. While it may be a household name with 230 franchised stores across Australia, its offerings are far from the comprehensive range found in a supermarket.
Experts like Sanjoy Paul, an associate professor at the UTS business school, argue that these specialized stores, with their limited turnover and niche products, should not be considered direct competitors to a supermarket behemoth like Woolworths. After all, a small shop selling a few vegetables or a cheesecake doesn't quite compare to the vast array of goods available at Woolworths.
Convenience Stores and Petrol Stations: A Real Alternative?
Woolworths also identifies petrol stations, newsagents, and convenience store chains as part of its competitive landscape. However, these outlets often lack the breadth of products found in a supermarket. For instance, a trip to a Nextra news agency might yield Christmas wrapping paper and stationery, but you won't find the essential groceries needed for your weekly shop.
Even the relationship between Woolworths and the Ampol/Foodary chain, where Woolworths' MetroGo stores were rebranded to Foodary, complicates the notion of competition. While you can find snacks and a limited selection of groceries at these convenience stores, the prices are often higher than at Woolworths, and the range is much narrower.
Online Shopping: The New Frontier
The rise of online shopping has introduced new players into the grocery market. Woolworths lists ready-made meal delivery services like Lite n’ Easy as competitors, despite these services not selling groceries per se. While convenient, these services cater to a different market segment and often come at a premium compared to supermarket prices.
E-commerce giants like Amazon are also cited as emerging competitors. Although Amazon's grocery range in Australia is still developing, its investment in distribution infrastructure signals a potential shift in the future of grocery shopping. However, as seen in the US, even a mature Amazon grocery business holds only a small fraction of the market.
The Reality for Shoppers Over 60
For our members over 60, the reality of grocery shopping competition is nuanced. While it's true that there are more options than ever before, the convenience and range offered by Woolworths and Coles often make them the preferred choice. Specialty stores and online services can complement the big supermarkets but are unlikely to replace them for the complete shopping experience.
As savvy shoppers, it's essential to stay informed about the options available. Whether it's supporting local butchers for quality meats, indulging in a specialty cheesecake for a special occasion, or taking advantage of online deals for non-perishable goods, there are ways to maximize value while navigating the competitive grocery landscape.
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