There are over 2,000 Supermarket businesses in Australia, employing over 300,000 people across the country. These businesses contribute significantly to the economy as a whole, generating $105billion annually. This is clearly a lucrative industry to be in, however business owners in this sector are exposed to significant risk and competition.
Australia’s Supermarkets and Grocery Stores industry is one of the most competitive industries to be in. In the last 5 years, German Supermarket ALDI has quickly grown, significantly altered the industry as a whole with its discounted offerings. This has forced others in the industry to cut their own prices and expand their private-label product ranges in order to stay competitive. Changing consumer attitudes and shopping preferences have also heavily influenced the industry. Operating in such a volatile environment, these businesses should be protected.