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Analysis and Comment (25)

Lidl: will Australian shoppers line up for another discount grocery chain? Lidl: will Australian shoppers line up for another discount grocery chain? Robert Wallace/Flickr

A Lidl bit of grocery competition could cause a Coles rethink

Australian shoppers have inadvertently invited global discount grocers to our shores by demonstrating their readiness to adopt private labels. In 2001, German discounter Aldi opened its first store in…
The corporate regulator has gone after Coles for unconscionable conduct against smaller suppliers. The corporate regulator has gone after Coles for unconscionable conduct against smaller suppliers. AAP/Paul Miller

ACCC signals strategic change in battle with supermarkets

The corporate regulator’s ongoing battle with the major supermarket chains took an interesting twist on Monday when it alleged that Coles had engaged in unconscionable conduct against various small suppliers…
Chain of responsibility laws mean all parties involved in the supply chain can be held responsible for infringements such as speed, fatigue, and heavy or unrestrained loads. Chain of responsibility laws mean all parties involved in the supply chain can be held responsible for infringements such as speed, fatigue, and heavy or unrestrained loads. Dan Peled/AAP

Pushing it up the chain: Why big business can’t ignore truck safety

Meeting corporate obligations along the supply chain is not just good practice - when it comes to workers' safety, it’s the law. This came sharply into focus last week as raids and prosecutions of transport…
A new grocery code of conduct provides new rules for a sector subject to price wars, but will not solve all market problems. A new grocery code of conduct provides new rules for a sector subject to price wars, but will not solve all market problems. Lukas Coch/AAP

Coles and Woolworths code useful, but beware disputes

Coles, Woolworths and the Food and Grocery Council have released a draft industry code of conduct to help govern their relationships with suppliers. The code will be “voluntary” under section 51AE of the…
Coles is believed to have applied for an Authorised Deposit-taking Institution licence, which would allow it to take deposits. Coles is believed to have applied for an Authorised Deposit-taking Institution licence, which would allow it to take deposits. AAP

Mortgage price check in aisle four as Coles banks on future

The news that Coles may be seeking a banking licence would, if confirmed, put the supermarket group and its parent company Wesfarmers in direct competition with Australia’s major banks. It would allow…
Legally, it would be extremely difficult to prove shopper docket fuel discounts are anti-competitive. Legally, it would be extremely difficult to prove shopper docket fuel discounts are anti-competitive. Michael Welsh via Flickr

Are shopper dockets anti-competitive? Good luck proving it

A curious feature of the election campaign to date has been the lack of focus on competition and consumer policy. Generally this subject rates highly, as parties try to curry favour with consumers and…
Is Bob Katter exaggerating when he says Coles and Woolworths own 80% of the groceries market? Is Bob Katter exaggerating when he says Coles and Woolworths own 80% of the groceries market? APH

FactCheck: do Coles and Woolies control 80% of the market?

“The Americans are screaming blue murder because WalMart and their competitor have now reached about 23% market share. Here we have two supermarkets with a market share of over 80%, so if they decide to…
Consumers want cheap meat from happy animals - can farmers and supermarkets keep up? Consumers want cheap meat from happy animals - can farmers and supermarkets keep up? David Mitchell

Coles are the piggy in the middle of animal welfare confrontation

Last week, Coles supermarkets began selling shopping bags on behalf of animal rights campaigners Animal Australia. Following a backlash from farmers, Animals Australia withdrew the bags. But the stoush…
Coles' ten-year deal with farmers' cooperative Murray Goulburn will have significant consequences for the dairy industry. Coles' ten-year deal with farmers' cooperative Murray Goulburn will have significant consequences for the dairy industry. Image from www.shutterstock.com

Coles' milk deal gives supermarket suppliers a reason to be sour

Earlier this month, Coles and Murray Goulburn announced a ten-year deal that is likely to have significant consequences for the dairy industry, as well as Australia’s grocery sector more broadly. Starting…
A dramatic decrease in the availability of sow stall pork and caged eggs has been driven by consumer concern. A dramatic decrease in the availability of sow stall pork and caged eggs has been driven by consumer concern. AAP

It’s no yolk: grocery giants commit to animal welfare initiatives

Australia’s two largest grocery retailers, Coles and Woolworths, have vowed to dramatically decrease the availability of pork and egg products sourced from intensive farming systems. The decision was made…
Proving that Woolworths and Coles engaged in unconscionable conduct with their suppliers will be a lengthy and difficult task for the ACCC. Proving that Woolworths and Coles engaged in unconscionable conduct with their suppliers will be a lengthy and difficult task for the ACCC. AAP

ACCC grocery inquiry will take a long time to bear fruit

The Australian Competition and Consumer Commission (ACCC) has declared open season on Coles and Woolworths. In an unusual step, the ACCC’s chairman, Rod Sims, discussed his organisation’s current investigations…
The ACCC has put suppliers' claims of supermarket bullying under the spotlight, but the magnitude of the duopoly’s supermarket power should also be addressed. The ACCC has put suppliers' claims of supermarket bullying under the spotlight, but the magnitude of the duopoly’s supermarket power should also be addressed. Image from www.shuttershock.com

ACCC’s inquiry into supermarket bullying misses the real issue of duopoly power

The Australian Competition and Consumer Commission (ACCC) announced last week that it is investigating claims that Coles and Woolworths are bullying suppliers. The issue is serious, but the ACCC investigation…
Market share: Two companies in Australia control more than half of the country’s bread and bakery business. Market share: Two companies in Australia control more than half of the country’s bread and bakery business. Flickr/looseends

Confronting corporate power in the food system

The Federal Government’s current national food plan process is heavily dominated by business interests. It is built on flawed assumptions that the market can provide the solutions that our broken food…
Coles has revamped its loyalty rewards program in an attempt to win over shoppers from Woolworths. Coles has revamped its loyalty rewards program in an attempt to win over shoppers from Woolworths. AAP

Can Coles (Fly) buy shopper loyalty?

Consumers are becoming less loyal as they put more focus on getting the best possible deal, and become more willing to shop around to get it. In response, retailers have turned to loyalty programs in an…
Is the “waterbed effect” - where manufacturers attempt to recoup discounts given to large retailers by raising prices for smaller competitors - an issue in Australia? Is the “waterbed effect” - where manufacturers attempt to recoup discounts given to large retailers by raising prices for smaller competitors - an issue in Australia? AAP

Who suffers when retailers exercise their market muscle?

When a major retailer uses its countervailing power (or “market muscle”) to negotiate better terms from suppliers, should policy makers be concerned? In Australia, the debate has focused on dairy farmers…
Pharmacy retailing is the last frontier for large supermarket chains. Pharmacy retailing is the last frontier for large supermarket chains. Flickr

Is pharmacy the final frontier for supermarkets?

Australia’s two major supermarket retailers, Coles and Woolworths, already have vested interests in fuel, convenience, liquor, hardware, hotels, apparel, general merchandise and technology. While they…
Coles is among a number of companies that have misjudged social media campaigns. Coles is among a number of companies that have misjudged social media campaigns. AAP/Alan Porrit

Fishing for compliments: a dangerous marketing strategy

My central problem with branded clothing is my reluctance to actually be branded. Why on earth would I pay to advertise someone? When a Kiwi can make a motza from auctioning her buttock flesh to a strip…
We take for granted cheap and plentiful fruit and vegetables and “forget” about shortages. We take for granted cheap and plentiful fruit and vegetables and “forget” about shortages. AAP

The hidden price of discounting fresh fruit and vegetables

How should we consider the potential broader ramifications of Coles’ recent promise to reduce by 50% the price of fresh fruit and vegetables? In the face of cheap fruit and vegetables, it is hard to take…
Are fruit and vegetable producers being caught up in the pricing war between Coles and Woolworths? Are fruit and vegetable producers being caught up in the pricing war between Coles and Woolworths? Supplied

Get ready for a fruit fight: the fallout from Coles' price war on produce

Amid tough trading conditions and intense competition, Coles has fired the latest salvo in its ongoing supermarket war with Woolworths, announcing it will reduce the price of some fruit and vegetables…
Curtis Stone and Normie Rowe in a Coles ad that has attracted the ire of a fake Chopper Read. Curtis Stone and Normie Rowe in a Coles ad that has attracted the ire of a fake Chopper Read.

Chopper Read, Coles and Twitter: going down and staying down?

It is a very 21st century story. A Twitter account purporting to be that of noted Australian criminal Mark Brandon “Chopper” Read takes offence to an ad featuring ageing singer Normie Rowe and uses his…
The debate around Coles and Woolworths' home-brand products has been far too simplistic. The debate around Coles and Woolworths' home-brand products has been far too simplistic. AAP

House-brand push boils down to capitalism’s crisis

Global food giant Heinz has made a bit of a fuss about the growth of private-label or in-house brands in our major supermarkets. William Johnson, executive chairman, CEO and president of the $US16.4 billion…
Homebrand labels have more than 25% of market share in Australia: but do consumers really benefit? Homebrand labels have more than 25% of market share in Australia: but do consumers really benefit? AAP.

Nudged towards homebrand by our supermarkets; but is it really a choice?

International food giant Heinz has recently again complained about the behaviour of Australian supermarkets Coles and Woolworths, complaining the Australian retailers' homebrand strategy is creating an…
The real cost of the alcohol price war is the damage heavy drinking does to public health and the social fabric. The real cost of the alcohol price war is the damage heavy drinking does to public health and the social fabric. Rick Audet

Health the casualty of Coles and Woolies alcohol price war

In recent days, Woolworths and Coles have put out a flurry of media releases, each staking a claim to being the cheapest place to buy alcohol this summer. Coles have “declared war” on liquor prices and…
The budget shopper is alive and well - but what of the “ethical” shopper? The budget shopper is alive and well - but what of the “ethical” shopper? AAP/Woolworths

We are what we eat: the demise of the ethical grocery shopper

In 1954, American consumer behaviour academic, Gregory Stone identified four different types of consumers. Consisting of 150 in-depth interviews, Stone’s research found there was an “economic” shopper…

Research and News (1)