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How much money is Walmart worth? Is Aldi Australian owned? Do you need a mask to go to Woolworths? What leadership style does Woolworths use? Does Woolworths own Bunnings? Which is older Coles or Woolworths? Who owns Coles now? Is liquorland part of Coles? What was the first supermarket in Australia? Where is the biggest Coles in Australia? Leading industry trade publication Inside Retail reported that Coles could have as much as 30 per cent of space at its large stores allocated to general merchandise.
Today Woolworths announced it will launch a bundle of insurance products, including life and pet insurance. One thing will lead to another and pretty soon supermarkets will be selling not just a clothing line but home furniture, extensive kitchenware, linens - pretty much anything you like. In the US, large-format grocery stores such as Rochester, New York-based Wegmans and Michigan-based Meijer sell a dazzling range of clothing, home goods and other general merchandise from their large-format supermarkets.
As Costco has found, multiplying in Australia with a 13, square metre prototype is highly problematic. Can Coles supersize its stores enough to do some real damage to the existing status quo in Australian retailing? This enables small specialties to thrive in categories that in the US and UK have vanished under the supermarket roof. Those small specialties in Australia fill a lot of shopping centre space and pay a hefty amount of rent. Ultimately, as usual, the answer could lie with the planning system, which will have a say in how big supermarkets can get.
Global retailers like Tesco and Walmart rely heavily on formats on steroids such as hypermarkets, which range in size up to about 18, square metres. Getting those kinds of plots in Australia would be improbable, but supermarkets wouldn't need to be that big — to square metres would give them a big sniff at a number of popular merchandise categories.
From the standpoint of a small clothing or homewares retailer in a shopping centre, that's just another headache they don't need right now.
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