Woolworths Woes Spark Talk of Full-blown Supermarket Price War With Coles, Aldi

 In Aldi, Australia, Coles, Metcash/IGA, NewZealand, Woolworths
The battle for market share in the $90 billion grocery sector could turn into a full-blown price war next year if Woolworths’ attempts to restore sales growth in supermarkets fail to gain traction, UBS says.
All four major grocery retailers are keen to avoid, and have played down the risk of, a price war. But if market leader Woolworths fails to restore sales growth after investing $700 million into reducing prices and improving service in stores this year it could become more aggressive and initiate a price war in 2017, a report by broker UBS said.
UBS defines a price war as irrational promotional intensity aimed at winning market share and countering the growth of rivals, where price investment is matched or exceeded by rivals, driving down industry profits at an accelerating rate. Sydney Morning Herald – Read more…

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