According to Paul Simons, former executive chairman of Woolworths (1987-1995), growth opportunities are shrinking for big supermarket players due to food deflation. As arch-rival Coles has outperformed Woolworths’ sales growth for 27 consecutive quarters, Simons pointed out that a back to basic approach could help Woolworths get back on track. However, with Aldi winning market share, the $90 billion Australian supermarket sector is not as profitable as it used to be.
BLAME IT ON FOOD DEFLATION
