Price Determination in the Australian Food Industry A Report

GROCERY RETAIL – PERFORMANCE OF GROCERY RETAILERS
Making comparisons
We have compared the performance of Australian major retailers to major public listed
international groups, using a number of retail and financial key performance indicators.
Figure 125. Costs of doing business and gross profit, three years, % of sales
Our chains operate with higher costs and target margins than other majors due to the nature of this retail market.
%
35
30
25
20
cost of doing business
gross profit
15
10
5
0
WW Wmart Kr Alb Car
Abbreviations
WW Woolworths
Wmart Wal-Mart – a United States supermarket chain
Wmart Int Wal-Mart operations outside the United States
Kr Kroger – a United States supermarket chain
Alb Albertsons – a United States supermarket chain
Car Carrefour – a French hypermarket and supermarket chain
CML Coles Myer
Figure 126. Days in stock
Coles do not report their investment in stocks but Woolworths is performing better than other majors in this indicator.
days
Price Determination in the Australian Food Industry A Report
60
50
40
30
20
10
0
WW Wmart Car Alb Kr
Figure 127. Earnings before interest and tax, last three years, % of sales
Australian retailers operate on lower overall margins than most major European Union and United States retailers.
%
8
7
6
5
4
3
2
1
0
CML WW Wmart Wmat Int Tesco Car Alb Kr
120