Woolworths and Wesfarmers both highlighted at their annual results that the competitive landscape in food and grocery remains robust. Competition has increased from new store expansion from Aldi, and the industry-wide focus to pass on efficiency gains to customers, and invest in lower prices. However, sales growth is likely to be harder to obtain than recent years, and margin growth is unlikely given management’s strategy is to pass any efficiency gains onto customers. Although Aldi is gaining market share, it has largely been at the independent retailer’s expense. Costco is also growing, Metcash's marketing has had some success, and there are now rumours emerging of German retailer, Lidl, entering the market.