Five trends shaping Australian grocery retail in 2018

Date : 27 March 2018

Nick Miles, our head of Asia-Pacific, examines the key themes affecting the Australian grocery retail market and influencing retailers’ strategies this year.

1.    New market disruptors

Combine the launch of Amazon with the imminent entry of Germany’s Kaufland, and we’re set to see a serious change in Australia’s competitive landscape over the next 12-24 months. It’ll bring both big challenges and opportunities. 

2.    Online and digital acceleration

Amazon’s arrival has prompted retailers to increase investment in online and digital initiatives. We expect this to increase in 2018 as retailers improve capacity, data capabilities and fulfilment services. 

3.    Format differentiation

We’ve seen plenty of this over the past year and, with more new market entrants, believe it’s only going to intensify. It’s more important than ever for retailers to make sure the in-store experience is differentiated and relevant to shoppers. 

4.    Balancing the value equation

Price has become a major discussion point in recent years and will remain so in 2018. However, retailers realise price alone doesn’t win shopper loyalty; factors like private label ranges, quality, choice and uniqueness also play a part. 

5.    Convenience experimentation

We’re seeing convenience retailing evolve in two ways. Firstly, forecourt stores are improving their ranges and value. Secondly, retailers are branching out into different standalone formats targeting new locations and shopper missions. 

Learn more about these trends and what they mean for suppliers
Follow this link to download a shortened version of our Australia Outlook 2018 report. 

Retail Analysis subscribers can download the full report here.

Nick Miles

Nick Miles

Head of Asia-Pacific
Retail

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