Retail in Asia

In Shops

Coles, Woolworths, IGA to lose market share to Aldi, David Jones, says Moody’s

Coles, Woolworths and Metcash’s IGA chain are facing increased competition at both ends of the socio-economic spectrum as discounter Aldi ramps up its Australian presence and department store chain David Jones upgrades its gourmet food offer.

Ratings agency Moody’s says Woolworths, Coles and IGA supermarkets will continue to lose market share over the next 24 months as Aldi expands into new markets and as David Jones skims off wealthier customers by refurbishing its gourmet food halls.

Moody’s expects same-store sales growth at both Coles and Woolworths to come under pressure as Aldi opens 60 new stores over the next 12 months, increasing its store footprint by 16 percent.