Woolworths loses market share, grocery dollars in Victoria thanks to industrial action

Woolworths has experienced a significant decline in market share in Victoria, with a 6.6% drop recorded for December 2024 compared to the same period in 2023, as a result of industrial action by the supermarket giant’s industrial action.
The average spend per person at Woolworths decreased by nearly $52 during this time, as consumers turned to competitors such as Coles, ALDI, and IGA.
The decline in market share coincided with industrial action by Woolworths employees in Victoria, which began in late November 2024 and was resolved by December 7, 2024. The industrial action, which was due to a pay dispute involving the United Workers Union (UWU), affected distribution centres across Victoria and impacted Woolworths, BWS, and Dan Murphy stores in Victoria and Southern New South Wales.
As a result of the industrial action, Woolworths’ share of the grocery wallet in Victoria decreased by 7.1 percentage points from the previous year. In December 2024, Woolworths customers spent 38.3% of their total grocery spend with the brand, down from 45.4% in December 2023.
In contrast, Coles, ALDI, and IGA collectively gained market share as consumers sought alternatives to Woolworths. Coles increased its share of the grocery wallet by 1.9 percentage points, while ALDI and IGA saw increases of 3.4 and 4.0 percentage points respectively. The average spend per buyer also increased at ALDI and IGA, with rises of $8 and $7 respectively.
Ben Dixon, CEO of data and insights firm Fonto, commented on the situation, stating, “Even the most loyal Woolworths customers in Victoria faced out-of-stock issues just as they were preparing for Christmas. Although the industrial action was resolved by the 7th, it clearly took time to get shelves restocked again, but consumers had already moved on to alternatives.”
Dixon further noted the impact on IGA, saying, “IGA seemed to be the biggest winner – their average basket size jumped proportionately higher as consumers seemed to be doing a ‘top-up shop’ for anything that wasn’t on the shelves at Woollies.”
Fonto, which collects financial transaction data from over 85,000 Australians to analyse buyer behaviour, provided the insights into the shifts in market share and consumer spending patterns during this period.