In Australia, Woolworths and Coles control approximately 70% of the market and have long dominated grocery retailing. In recent years, however, cracks have begun to emerge. Market share of Metcash (OTCPK:MCSHF), previously the third-largest player, has stagnated, and profits have begun to decline quite rapidly. The company is scrambling to cut costs and reinvest in price to remain relevant. Independents are losing share too. It's getting ugly, and, as the reader will see, it is spreading to Woolworths.
The culprit? A German retailer named Aldi. Operating with an unconventional business model, the company has won over customers around the world with its simplicity, low costs, quirky brand names and increasingly convenient locations. Building on its success in the
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