Interesting reading the article. Would be good to see the complete ACCC report.
If you only shop at one supermarket (but you have access to more) you’re also complicit?
I diverge from common thoughts here. I don’t want my productivity going to prop up business lobby groups. Colesworth is the result of an economic system that cannot resolve the need for more efficiencies via economies of scale monopolies and the need for much competition to get an accurate price signal. No Australian party wants to tamper with the current economic system, so it was obvious this ACCC report was leading to nothing.
I swear there’s a hole in the market here. A third option that was online-only with collection points/delivery services similar to Colesworth that undercut on price.
Startup costs would be massive, though not as much as trying to enter the market as a third retailer with physical stores in all the suburbs.
It could start with a few distribution nodes (warehouses) and grow out. Order online, go to warehouse to collect. The next step where you can distribute in more suburbs or deliver to homes is where it gets most difficult.
I think the hole is if there was a logistics company that could handle Aldi deliveries.
That was tried here, and the guy couldn’t get contracts with suppliers. They didn’t want to endanger their contracts with the Woolies and Foodstuffs.
Those sort of exclusivity deals should be made illegal.
Unfortunately, a Duopsony is just as destructive to the market as a Duopoly.
They are illegal.
But by the time the courts have heard the case, the business is already bust.
Unfortunately delivery or transport probably ups costs… Which is why Aldi doesn’t deliver. Really sucks for someone who requires it
Home delivery services are a recent offering. What did these people do before about 5 years ago?
If they are house-bound, organise with a local taxi driver to get to the shop and get some things for them.
If they are mostly-mobile, same thing, but organise a drop off and pickup time and get a hand with getting groceries into the house and up stairs, etc.
A lot of the older “career” drivers will happily do regular stuff like this. Especially during the middle of the day in suburbia when it’s pretty quiet. Beats sitting at a taxi rank reading the paper.
The customers or the supermarkets?
I meant customers, but Dave has already answered.
Well that, and immediately having wesfarmers trying to buy you out. Cf: catch
‘$2.9 million over 3 years. This would be cash “to help suppliers stand up to the big supermarkets”, the government said.’
I am confused, the goverment thinks there is a problem with how big supermarkets treat producers Handing over 1 million a year solves the issue?
This SMH live post provides a bit more information: https://www.smh.com.au/national/australia-news-live-accc-puts-most-profitable-supermarkets-in-the-world-on-notice-israeli-strikes-kill-dozens-in-gaza-20250321-p5llcp.html?post=p58d1c#p58d1c
9.01am
Government pledges $2.9m to help suppliers stand up to supermarkets
By Josefine Ganko
As the ACCC supermarkets report reveals how the duopoly exerts power over consumers and suppliers, the government has announced $2.9 million in funding for produce industry associations to support education programs that will empower farmers to enforce their rights under the Food and Grocery Code.
Speaking at a press conference in Canberra, Treasurer Jim Chalmers says the funding was about “strengthening the arms” of the groups that represent farmers and producers. Treasurer Jim Chalmers, Assistant Minister for Competition Andrew Leigh and Finance Minister Katy Gallagher at a press conference in Canberra
Treasurer Jim Chalmers, Assistant Minister for Competition Andrew Leigh and Finance Minister Katy Gallagher at a press conference in Canberra Credit: Alex Ellinghausen
“We want to make sure that when our supermarkets are negotiating with our farmers, that we can strengthen the arguments of the people who produce our food.”
Chalmers added that Labor’s move to make the code mandatory and to introduce bigger penalties would also benefit suppliers.
Assistant Minister for Competition Andrew Leigh added that there were particular concerns around fresh food producers being required to agree to annual contracts, but then being subjected to week-to-week bidding, with the notion they will face much lower prices at the markets if the big supermarkets don’t stock their produce.
“This new initiative does ensure that the suppliers are going into those negotiations better able to take on the big supermarkets,” Leigh said.
@zero_gravitas @Ozzy good initiative
