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 Supermarket giants checked out, found wanting 

Supermarket giants checked out, found wanting

09 Jul, 2009 12:29 PM
CONSUMER hostility towards the powerful supermarket duopoly of Woolworths and Coles is palpable and growing, according to a series of focus groups conducted by social marketers.

In contrast, alternative retailers such as Aldi are growing rapidly in popularity, and the imminent arrival of another competitor, Costco, is being eagerly anticipated, the group's research conducted in Sydney and Adelaide with mothers aged 30 to 45 found.

Local growers' markets were also becoming increasingly popular, the research found.

Consumers perceived that Coles and Woolworths wielded too much power in the marketplace, but for those not living close to an alternative, there was little choice, said Neer Korn, the director of Heartbeat Trends, which conducted the focus groups before the Federal Government pulled the plug on the price comparison website, Grocery Choice.

The groups also admitted to feeling more readily irritated or angry at Coles or Woolies if something little went wrong, like a long queue or an unavailable product. They also believed the duopoly was more likely to try to pull the wool over consumers' eyes, which they resented.

"We tend not to focus on the negatives but there is no love lost there," said Mr Korn, whose clients include Coles Myer.

"Consumers were more than happy to offer their views on Coles and Woolworths, and not in kind terms."

Aldi's growing popularity appeared to be based on a broader base than just cheaper prices. Aldi products were perceived to be carefully sourced and of high quality by the focus groups. Service was perceived to be superior and consumers enjoyed the surprise factor of Aldi's stream of one-off non-grocery items such as electronics and toys at sale prices.

Although most mothers surveyed said they were not yet personally hurting from the recession, they were nevertheless looking for better value, bulk-buying opportunities and discount stores.

"They had a strong sense that what they didn't want was the feeling of 'being had', and they were prepared to drive the extra distance if it made them smart shoppers," said Mr Korn.

Consumers were also fed up with being brazenly ripped off, yet being told it was for their own good, he said, with Mars singled out over the trend among manufacturers of offering smaller "portion controlled" packaging on the pretext of fighting obesity, yet failing to reduce the product's price.

The move towards unit pricing, which becomes compulsory for all large grocery retailers in December, was seen as highly positive by the mothers and a way of fighting back against the trend.

Woolworths said yesterday it was unable to respond at short notice and without having seen the survey's results.

A spokeswoman instead referred to a survey conducted by the Herald in March, which found that out of 10 household corporate brands, consumers perceived Woolworths to have the best reputation for corporate citizenship. Coles came second.

The Coles spokesman said Heartbeat Trends results did not correspond with a recent Roy Morgan satisfaction survey and its own customer satisfaction tracking, "both of which show Coles satisfaction levels having risen over the last six months".

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Woolies and Coles need to get real with the way they treat their consumers and their suppliers. They are arrogant because they are big and have a duopoly, which is dictating prices and terms to both ends of the chain in: 1) unjust returns to growers and importation of cheap subsidised product from of shore as against supporting the local product which is better and at least leaves less of a carbon track because it is our own garden; and 2) using and promoting its own or brand named cheaper products which are neither as sustainable enviromentally or as good dollar for dollar as the local product.
Posted by optimus prime, 12/07/2009 10:03:28 PM

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Aldi... it's products were perceived to be carefully sourced. Photo: Robert Pearce
Aldi... it's products were perceived to be carefully sourced. Photo: Robert Pearce
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