Australia's supermarkets are at war and the battle is only beginning as more entrants start to eye off possible sites.

It comes as Woolworths is undertaking a review of some of its store locations, while Aldi is taking market share from Woolworths ad Coles.

However, the much-vaunted arrival of the German-based Lidl seems to have lost some momentum, with leasing agents saying the tough competition in Australia has been a deterrent for the group.

According to Michael Bate, head of retail at Colliers International, Lidl executives first came out to Australia 18 months ago to have a good look at the market.