Cosco And Woolworths Case Study

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Introduction: Supermarket businesses are purposed to provide diversity of goods for daily life consumption. In comparison to other industries in Australia, the supermarket industry is one of the most competitive industries. Companies like Coles Supermarket and Woolworths are giant market leaders. Founded in 1960, Coles Supermarket is one of the leading and significant parts of the Australian supermarket sector. The supermarket chain is owned by Westfarmers. Coles owns 801 stores all over Australia and employs around one hundred thousand workers within. Coles is definitely one of the leading players of the market compared to its competitors. Its popularity grew rapidly in the marketplace. The four biggest companies in the supermarket industry jointly takeover 80 per cent of the revenue of the supermarket …show more content…

Coles and Woolsworth account for 60 per cent making them both dominant in the market. https://www.retailworldmagazine.com.au/spotlight-australias-supermarkets-grocery-industry/ Coles has continued to improve upon its sales and customer base, which has been shown to be growing in terms of it’s increased market share. Cutting down their prices has also lead to serious price wars with rivals Woolworths and Aldi. During 2016’s financial year, cole’s price cut had pushed up sales by 4.7 per cent amounting to 7.6 billion in revenue due to increased demand because of their lowered prices during the first quarter. However the pace of growth slowed down compared to previous years. On the other hand, Wesfarmers’ chief financial officer had stated that in comparison to Coles’ own statistical analysis, it’s market share had risen.

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