The ACCC report into the state of competition in the grocery industry has been released, with a number of recommendations mooted to improve competition. It should be noted, however, that the ACCC believe the issue of food inflation may have been overstated in some quarters. Australian Food News reports on the ACCC’s response to the major issues raised during the Inquiry. In General - Key Findings The ACCC suggest that the current nature of grocery retailing in Australia is “workably... ...Read more »
The Rudd Government today released its preliminary action plan in response to the Report of the ACCC inquiry into ‘the competitiveness of retail prices for standard groceries’. The Report reveals there is real reform to be had in Australia’s grocery sector, according to the Government. Despite the Report establishing that “grocery retailing is workably competitive” it also highlighted a number of factors that currently limit the level of competition including “the... ...Read more »
Coles is among the first retailers in Australia to implement a natural refrigerant system in its new Ropes Crossing store, opening this September. The system will eliminate up to 700 tonnes from the store’s annual greenhouse gas emissions. The Ropes Crossing development was completed with the assistance of the Green Cooling Council, a not-for-profit organisation founded by members and suppliers of the refrigeration industry. The Green Cooling Council (formerly the NRTB) has been working with... ...Read more »
The Transport Workers Union, the leading union for truck drivers, has reported that they plan to hold demonstrations every fortnight until the major retailers respond to their requests for better pay. Hundreds of truck drivers participated in a strike at the Woolworths outlet in Rosehill last Friday morning and this followed a protest at the Woolworths store in St. Clair two weeks previously. On Friday they walked from the racecourse to the supermarket for a speech by union reps before stopping nearby... ...Read more »
The Australian Competition and Consumer Commission yesterday handed their 642-page report into the state of competition in the grocery industry to the Federal Government and it has been suggested that a “competition test” may be among the recommendations. Changes already mooted have included unit pricing, which appears certain, changes to restrict “creeping acquisitions”, a price monitoring system and the introduction of an industry ombudsman. Alterations to zoning restrictions... ...Read more »
Planet Retail has announced the world’s top 30 grocery retailers (by sales), with Wal-Mart at the top of the heap for the tenth straight year. Sales of US$395.31* billion (A$419.45 billion) last year enabled US retailer Wal-Mart to eclipse the French-based Carrefour in second place, which had approximately A$145 billion in sales. Tesco, the leading UK retailer, climbed from fourth to third thanks to sales of A$105 billion. Australia’s two market leaders, Woolworths and Coles Group, ... ...Read more »
Woolworths’ bid to gain a greater foothold in the NZ supermarket sector has been quelled by a court ruling, which will not enable them to purchase The Warehouse. The Commerce Commission, the competition watchdog in New Zealand, has claimed the decision by the Court of Appeal, which overturned the High Court decision on ownership of The Warehouse Group Ltd, is a victory for supermarket consumers and competition in markets. In the second appeal from the Commission’s clearance decision,... ...Read more »
The planned two-week national truck stoppage, which began at midnight, has already led to panic amongst some consumers but appears unlikely to lead to major food supply shortages. Mick Pattell, a spokesman from the National Road Transport Forum - one of the organisers of the shutdown, hopes the public gets behind truck drivers and is keen for government action. “Hopefully the government will come to the table fairly quickly and not allow this to happen to the public,” he said, according... ...Read more »
Former Australian Competition and Consumer Commission (ACCC) Chairman, Allan Fels has warned that town planning laws are currently a “tragedy for consumers” and suggests that action needs to be taken to ensure preferential treatment is not given to the leading retailers. “The planning laws restrict competition -they protect the big shopping centres,” Professor Fels said. Professor Fels made his comments at an Urban Taskforce luncheon - just a week before the ACCC finalises... ...Read more »
Woolworths, Australia’s largest supermarket operator, has today announced full year sales of $47b, representing a 10.7% increase on last year. Woolworths advised that their food and liquor operations had a 7.9%* sales increase for the year, with inflation for the year of 2.9%. Fourth quarter inflation (2.9%) was seen to drop on the back of a deflation in fruit and vegetable prices, and was markedly lower than the figure of 4.5% registered during the third quarter. Woolworths CEO Michael... ...Read more »