Operations

Channels

As of 2010, Woolworths (known as 'Woolies') is the market leader with 43% market share and 835 stores, followed closely by Coles (purchased by Wesfarmers in 2007) with 37% market share and 755 stores.
Through retail consolidation, Woolworths and Wesfarmers groups have become powerhouse super-retailers expanding their reach into the convenience, petrol, variety store, hardware and liquor sectors. As a result, this duopoly controls about 70% of the dry grocery market, 60% of the dairy market, 50% of the fresh food market and almost 5% of the retail liquor market, plus 1,100 petrol stations.
In the quest for earnings growth in a mature market, both retailers choice of store location is evolving. Traditionally, Woolworths and Coles stores are found in high rent, high capacity metropolitan shopping malls with large parking lots as anchor tenants whose pulling power brings customers to the other specialty shops. However, with growing consumer demand for convenience and one-stop shopping, both chains are now seen to be moving into non-traditional store locations using more compact 'express' convenience-style formats in high density residential and business areas.

The 'third force' in the market is Metcash, Australia's leading wholesale distributor. Metcash is a buying group that negotiates on behalf of the independent grocery, liquor and hardware sectors.
Around 60% of all independent retailers (by store numbers) are directly supplied by Metcash, with approximately 95% of independent grocery turnover potentially sourced from Metcash. Metcash owns the Campbells Wholesale network and IGA Distribution.
The largest banner group of independent retailers is IGA (Independent Grocers of Australia) which also includes Ritchies, FoodWorks, Franklins and Foodland. They have 15% share of the grocery retail market.
IGA together with SPAR Australia and several other independent retailer banner groups constitute between 85-95% of all independent retail sales on a nationwide basis.
Just as the major chains are found in large shopping malls, typically IGA and other smaller independent stores generally form part of suburban commercial district 'strip' shopping and high street locations in regional areas. However, independent Supa IGA stores can now be seen in larger shopping centres as the secondary grocery tenant.

	Woolworths	Wesfarmers	Metcash

Supermarkets
Variety Stores
Liquor Stores
Fuel & Convenience Stores
Other Retail Stores
Supermarket House Brands	Woolworths Homebrand Select Fresh Organic Macro Naytura Freefrom	Coles $martBuy Simply Basics Derma Purr and Banquet pet foods	Black & Gold IGA Signature Way of Life Purely Organics Body Logic

Information on this page is taken from various internet sources and is of a general nature only.