News

Woolworths: Sunday is the new Saturday for shoppers

 

Customers are moving away from the big weekly supermarket shop

New research from Woolworths has revealed that Sunday is fast becoming the new Saturday for trips to the supermarket, and an increasing number of Australians are visiting the supermarket almost every day of the week. Eighteen per cent of Australians now make Sunday their primary shopping day, up 3 per cent on 2012, making Sunday the fastest growing shopping day of the week. Tjeerd Jegen, Managing Director of Australian Supermarkets and Petrol said while the weekends are the time when many customers visit the supermarket, Saturdays are becoming too busy with other activities. “The weekend is when most customers have time to shop, and for families with kids, Saturdays are often busy with sport, kids’ activitiesRead More »

Duopoly bill introduced into Parliament

Independent MPs have united to back a new bill that aims to reduce Coles and Woolworths’ market power.

Bob Katter, Nick Xenophon, and Andrew Wilkiem introduced a bill on Monday that would force the supermarket giants to sell businesses over the next six years until they controlled less than 20 per cent of the market, according to the Australian Financial Review.

The bill as posted on the Parliament of Australia website is as follows:

 

2013

 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 HOUSE OF REPRESENTATIVES

 REDUCING SUPERMARKET DOMINANCE BILL 2013

EXPLANATORY MEMORANDUM

Circulated by the authority of Hon Bob Katter MP

REDUCING SUPERMARKET DOMINANCE BILL 2013

OUTLINE

The Bill reduces the market share of Australia’s supermarket oligopoly by reducing the market share of supermarket businesses to 20%Read More »

New bill aims to curb power of Coles and Woolworths

A new bill will be brought before federal parliament next week which is designed to curb the market power of supermarket giants Coles and Woolworths.

Independent MP Rob Oakeshott, will be introducing a private members bill which aims to strengthen the current rules surrounding abuse of market power especially within the context of $1 milk.

Oakeshott believes that provisions under the current Competition and Consumer Act do not sufficiently protect the supply chain or the consumer in the long term.

The Weekly Times Now reports that the new legislation would ensure that a broader view would be taken by the ACCC when making decisions, rather than limiting judgements to the direct consumer affected, or the direct supplier affected.

Oakeshott says that the 2011, $1 per litre milk campaign by both supermarkets isRead More »

Coke hits back at supermarkets

Coke hits back at supermarkets

Terry Davis, CEO of Coca-Cola Amantil (CCA), has lashed out at major retailers as Australian prices continue to spur debate.

Davis has called for a national debate about the future of food manufacturing and living standards in Australia as Coles and Woolworths step up their campaign against grocery price discrepancies, reports the Australian Financial Review.

“Do we want to be a country that has no food security, do we want to be a country that pays $1.50 to $2.50 an hour” Davis said after dismissing suggestions Coca-Cola Amantil’s prices were too high.

Ian McLeod MD of supermarket giant Coles, told Financial Review Sunday, Coca-Cola was two to three times more expensive in Australian than in Thailand.

McLeod mentioned the price of Coca-ColaRead More »

Woolworths evaluates free wifi in stores

 

WW Smartphone  Supermarket giant Woolworths is considering offering free wifi in its stores so customers may use its smartphone applications in areas with poor mobile coverage.

Woolworths introduced trial networks in its Kellyville and Wolli Creek stores late last year, and encouraged shoppers to use them to access online recipes, shopping lists and email.

Head of multi-option retail Has Fakira told an Optus customer conference yesterday the trial had attracted “good initial feedback”, although it was still in its early days.

“As our customers start to use smartphones more and more in our stores, a whole lot of other challenges come up,” he said. “We’re trying to assess where wifi makes sense.

“Clearly, in the ideal world, 3G, 4GRead More »

Woolworths defends parallel imports Woolworths defends parallel imports From Inside Retail

Woolworths has set up a team to expand its parallel importing of products from international locations in a bid to reduce prices consumers pay for groceries.

The team comes as the supermarket chain was found to have been buying Australian deodorant brands, including Lynx, Rexona, and Impulse, in Singapore for 60 to 75 per cent of the price it pays locally, reports the Australian Financial Review.

Woolworths, which has accused suppliers of earning excessive profits in Australia by charging local retailers higher wholesale prices than they charge offshore buyers, is now threatening to source more products from overseas through parallel import channels unless suppliers reduce the price differential or provide more transparency into their cost structures.

“Our desire is not toRead More »

Coles gets the cream with milk ‘investment’

SUPERMARKET giant Coles has uploaded a cartoon video to YouTube explaining its latest move in the dairy sector — a 10-year supply contract with farmer-owned co-operative Murray Goulburn entitled “Investing in Australian Dairy”.

“We’ve listened to what you said about supporting Australian dairy farmers so that our dairy industry remains strong for future generations,” the video says, while laying out the supposed benefits of the deal, which includes a five-year supply agreement with NSW co-operative Norco.

Not only will farmers be paid a premium for their milk, says Coles, but in owning the factory where it is processed they will also receive dividends.

“The new contracts are a major win for farmers because we cut out the middleman and farmers get a bigger share of the retail price. It is also a win for consumersRead More »

Ritchies growing in NSW

Ritchies Community logo

Ritchies has become NSW’s largest independent supermarket network with the launch of its Harrington Waters Supa IGA store – the third of three former Coles supermarkets acquired across regional NSW.

Ritchies completed the acquisition of nine former Franklins supermarkets in 2012.

“We are very excited to be expanding our presence across regional NSW, with our numbers now totalling 70 stores nationwide,” said Fred Harrison, Ritchies CEO.

“With 29 stores in NSW, most of which are located in the country, we are now the largest independent supermarket network in the state,” Harrison said.

“We have formulated what we believe to be a very effective and aggressive marketing campaign for these new acquisitions and plan to tackle our competitors head on.

“ARead More »

Sims “uncomfortable” with Coles and Woolworths duopoly

The head of the Australian consumer watchdog defended the organisation yesterday, following complaints it isn’t doing enough to prevent price competition between supermarkets from negatively impacting the industry.

In a speech to the National Press Club, Australian Competition and Consumer Commission chairman Rod Sims canvassed the achievements of the ACCC in the past year and pledged to take action on complaints against Coles and Woolworths.

He also commented he is “uncomfortable” with the amount of power the duopoly wields.

In terms of direct action, ACCC chairman Rod Sims says the watchdog could “entertain you, or not, with a massive list of what we have achieved,” but he says more is achieved indirectly.

“Because companies know we will enforce the law, the vast majority will not contemplate cartel or other anti-competitive activity. They have active complianceRead More »

Woolworths goes direct to farm gate

The deal with dairy farmers will cover pricing, supply arrangements and contract terms.

Woolworths has unveiled plans to source milk direct from Australian dairy farmers in a bid to deflect concerns about the viability of the industry, in the wake of $1-a-litre milk on offer from the big supermarkets.

The supermarkets have traditionally bought their dairy products from milk processors, who deal with the farmers.

Woolworths is planning a trial to stock homogenised and unhomogenised milk from a group of farmers from the Manning Valley in NSW by midyear.

Woolworths said the farmers lodged a collective bargaining notification with the Australian Competition and Consumer Commission for permission to negotiate with Woolworths on a deal that ”will allow them to trial the supply of milk directly to the retailer”.

The negotiations will coverRead More »