As Aldi and Costco continue to expand in the supermarket industry, the major players are expected to look for new ways to remain competitive and boost market share.

Woolworths recently announced it would invest $65 million in store improvements and increased staff hours. Meanwhile, Coles has already begun upgrading some of its larger stores to a new supermarket-style format.

Both brands are also amping up their selection of patisserie goods, fresh and par-baked breads in their in-house bakeries in a bid to capitalise on consumer interest in artisinal-style sourdough, batards and other stone baked loaves.

Aldi has said it will increasingly introduce fresh bread to certain stores throughout Australia.

“These strategies are designed to keep shoppers in-store for longer by presenting stores as foodie destinations, and attract greater sales through premium offerings,” IBISWorld industry analyst Brooke Tonkin said.