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Foodland beats ALDI for customer satisfaction

South Australia-based grocery Foodland scored highest in customer satisfaction in the last six months to October, ahead of discount supermarket ALDI, according to Roy Morgan’s latest research.

The grocery scored 91 per cent for a third straight monthly win ahead of ALDI on 89 per cent.

Meanwhile, supermarket Coles was at 85 per cent, just ahead its rival Woolworths on 84 per cent, with IGA taking fifth position at 80 per cent. The overall supermarket customer satisfaction across the industry declined by 6 per cent compared to this time a year ago.

“South Australian based Foodland has continued its good run in satisfying Australian consumers winning a third straight monthly satisfaction award in October and firming as a favourite to win a third straight annual award at Roy Morgan’s Customer Satisfaction Awards night early next year,” Michele Levine, CEO, Roy Morgan, said.

Foodland had the highest level of satisfaction for ‘bread’, ‘dairy’ and ‘delicatessen’ while ALDI led the race for ‘fresh fruit’, ‘fresh vegetables’, ‘meat’ and ‘general merchandise’. Woolworths led with ‘packaged groceries’ and ‘seafood’.

Satisfaction with main supermarkets

Source: Roy Morgan Single Source (Australia). Australians 14 6 months to October 2018, n = 25,304. Base: Australians 14+ main grocery buyer. 6 months to Oct 2018, n = 6,644.

“Wesfarmers’ decision to de-merge the Coles Group this year means Coles is an independently run business again for the first time since its acquisition by the West Australian conglomerate in 2007. The newly independent Coles is facing an increasingly competitive marketplace with discount retailer ALDI making significant gains in recent years and fellow German supermarket retailer Kaufland also set to enter the Australian market in force,” said Levine.

“The traditional battle with local rival Woolworths continues and with the increasingly competitive marketplace it is critical to keep track of what customers think in terms of relative satisfaction and perceptions of the major brands.”

Woolworths has beat Coles with customer satisfaction in ‘seafoods’, ‘packaged groceries’, ‘delicatessen’ and ‘general merchandise’. However, Coles more than holds its own with a higher customer satisfaction for ‘bread’, ‘dairy’, ‘fresh fruits’ and ‘meat’. Both supermarket giants showed satisfaction with ‘fresh vegetables’.

Roy Morgan’s ‘Retail Satisfaction Report-Supermarkets’ survey held face-to-face interviews with over 50,000 Australians in their own home, including over 11,000 main supermarket shoppers.

This story originally appeared on sister-site Inside FMCG.

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