Aldi threat growing for Coles, Woolworths: Moody's
ABCThe rise of German-based cut-price supermarket chain Aldi is posing a long-term challenge to the traditional retail giants of Woolworth and Coles, according to credit ratings agency Moody's. Moody's vice president and senior analyst Ian Chitterer said the "increasing acceptance of Australian consumers" and Aldi's "aggressive expansion plans" were a long-term threat to the duopoly of Woolworths and Coles. "It is important to note that the credit quality of the big two - which together account for 60 per cent of Australia's grocery market by value - is supported by strong margins, healthy cash flows and ongoing cost reductions," he said. Moody's now forecasts that Aldi's stores will grow 5 to 6 per cent per annum over the next five years, which is double its expectations for Woolworths and Coles.
History of this topic
'Limited incentive' for Coles and Woolworths to compete vigorously on price, and margins have risen, ACCC finds
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Woolworths and Coles are emphasising the threat of Aldi — is it really a competitive force to be reckoned with?
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ACCC's supermarket inquiry to hear from Woolworths followed by its rival, Coles
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Aldi boss explains why their groceries are so much cheaper - as he takes a swipe at Coles and Woolworths
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Aldi is still cheaper than Coles and Woolworths, which are 'almost identical on prices', Choice survey finds
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ACCC report finds Australians have lost trust in supermarkets as it focuses on Coles and Woolworths' market power and barriers to entry
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Aldi crowned by Choice as Australia's cheapest supermarket
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