The Retailing Market in Australia


Metcash, a smaller player in the market, is hoping to gain some ground in the grocery scene. They are trying to buy the Franklins chain, but have only acquired 88 stores. Pick n’ Pay, the owner of Franklins, is exiting the market and wants to sell the chain to Metcash.  However, the acquisitions have been blocked by the Australian Competition and Consumer Commission over concerns Franklins is a wholesale competitor to Metcash.

The non-grocery retailing market is just as difficult to enter in Australia. Costco has opened in the country, hinting more are on the way. Lowes, a US-based home improvement store, has entered into a partnership with Woolworths to enter the market with Wesfarmers currently leading in that market.

In the next five years, Australia is expected to grow in retailing at a CAGR of 1.5%, with 15 billion US dollars in sales by 2015.

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