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Tuesday, February 1, 2011

Casualties of supermarket price war.

As most people in Australia would know by now, the two biggest Australian supermarket chains having a price war on bread and milk.
When I speak with people to almost a person the reactions, comments and feedback raise two issues when we speak about this issue, and they aren't just about bread and milk, or about supermarkets.

They are the issues that have been relevant for many years.

The first one was is that most people look at lower prices in the selfish / short term aspect and they like them, frankly who can blame them, especially if you have a tight family budget and have to stretch it.
It you can find milk, bread, even meat, and fresh produce and cheaper prices it is quite understandable that you don't look beyond the price at the bottom of today's receipt.

However, that is not where it stops it gets a bit more complex, more complicated, as people start to question why would these big supermarket chains both do this?
Sure some of it is to match each other, but competition isn't fair when your business is so large that you control both the lines of supply and the retail business.
If the Australian people want to keep competition alive we must support the local independent retailers and local Australian farmer producers.
As for government regulation and waiting for the government to regulate powerful oligopolies in the market place??? … Turn It Up.

I'm Michael Robinson.


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