Multiple lockdowns and panic buying generate massive revenues for IGA supermarkets
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Recent lockdowns and restrictions around only being able to shop within 5km of home have shifted consumer behaviour towards shopping locally. This has caused independent grocery chains such as IGA to thrive.
In the last 18 months, IGA has seen rapid growth as a result of changes in consumer behaviour. Photo from IGA.
Some years ago, Independent Grocers of Australia (IGA) was overtaken as the third-largest grocery chain by Aldi. But recent reports show that the chain of supermarkets is experiencing a resurgence and is ready to differentiate itself from bigger rivals.
Among the recorded bumper revenues of different supermarket chains, IGA has had the most significant increase in sales. The independent grocery’s sales increased by 10.5 per cent compared to last year and 18.8 per cent compared to the 2019 financial year.
Meanwhile, Coles increased sales by 3 per cent, and Woolworths increased sales by 5.4 per cent in the past year, albeit off a much higher base than IGA.
IGA’s owner Metcash launched MFuture initiatives, which included store upgrades. They even rolled out new store formats such as bulk offer, extended private and exclusive label ranges, and accelerated their plans for e-commerce.
In the past few days, IGA has been continuing to personalise their in-store service by hiring six butchers from Coles, the latter having recently decided to abandon their local in-store butchers.
Some IGA stores added new features like walk-in cheese rooms, pizza ovens, an Asian grocer, and even an on-site sushi chef.
The supermarket has an on-site butcher and fishmonger, a walk-in cheese room, and an extensive liquor department. Photo from Shopping Centre News.
Even though supermarkets such as IGA, German juggernaut Aldi, and bigger chains like Coles and Woolworths still compete on price and product catalogues, this was no longer their entire focus.
Associate Professor Gary Mortimer from the QUT Business School said that the grocery giants “moved away from focusing on price and locking down prices to ways they can actually create greater value for shoppers.”
Joseph Romeo, an owner of around thirty IGAs, said that the chain's future was looking brighter as he has also seen a notable shift towards local shopping since the onset of the pandemic.
"As the IGA brand does evolve, you will see more and more different formats, and there'll be more IGAs coming around your corner soon," he told Nine News.
Have your shopping habits changed much over the last 12-18 months? Are you loyal to one particular supermarket, or do you go where the best bargains are?
In the last 18 months, IGA has seen rapid growth as a result of changes in consumer behaviour. Photo from IGA.
Some years ago, Independent Grocers of Australia (IGA) was overtaken as the third-largest grocery chain by Aldi. But recent reports show that the chain of supermarkets is experiencing a resurgence and is ready to differentiate itself from bigger rivals.
Among the recorded bumper revenues of different supermarket chains, IGA has had the most significant increase in sales. The independent grocery’s sales increased by 10.5 per cent compared to last year and 18.8 per cent compared to the 2019 financial year.
Meanwhile, Coles increased sales by 3 per cent, and Woolworths increased sales by 5.4 per cent in the past year, albeit off a much higher base than IGA.
IGA’s owner Metcash launched MFuture initiatives, which included store upgrades. They even rolled out new store formats such as bulk offer, extended private and exclusive label ranges, and accelerated their plans for e-commerce.
In the past few days, IGA has been continuing to personalise their in-store service by hiring six butchers from Coles, the latter having recently decided to abandon their local in-store butchers.
Some IGA stores added new features like walk-in cheese rooms, pizza ovens, an Asian grocer, and even an on-site sushi chef.
The supermarket has an on-site butcher and fishmonger, a walk-in cheese room, and an extensive liquor department. Photo from Shopping Centre News.
Even though supermarkets such as IGA, German juggernaut Aldi, and bigger chains like Coles and Woolworths still compete on price and product catalogues, this was no longer their entire focus.
Associate Professor Gary Mortimer from the QUT Business School said that the grocery giants “moved away from focusing on price and locking down prices to ways they can actually create greater value for shoppers.”
Joseph Romeo, an owner of around thirty IGAs, said that the chain's future was looking brighter as he has also seen a notable shift towards local shopping since the onset of the pandemic.
"As the IGA brand does evolve, you will see more and more different formats, and there'll be more IGAs coming around your corner soon," he told Nine News.
Have your shopping habits changed much over the last 12-18 months? Are you loyal to one particular supermarket, or do you go where the best bargains are?
