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 Watchdog site set to bust shop duopoly 

Watchdog site set to bust shop duopoly

14 Mar, 2010 03:33 PM
CONSUMER watchdog Choice has taken on Coles and Woolworths with a new website aimed at getting shoppers, farmers and suppliers to publicly voice their concerns about the duopoly.

Choice says the initiative will force grocery prices to drop.

It is not the website the federal government offered, and failed to deliver, in a pre-election promise to ease cost-of-living pressures.

It is Choice's version of the controversial price-comparison website, which was scrapped by the government last year.

The government said at the time it was concerned about the accuracy of the information and potential for incorrect prices being listed. Choice says it was dumped because of lack of co-operation from the two major chains.

The non-profit consumer group asks shoppers to look beyond the major two supermarket chains for cheaper groceries.

Consumers will notice if they visit checkoutchoice.com.au that it, too, does not offer shoppers individual prices for items at their local supermarkets or state which store is the cheapest in their area.

Under a ''take action'' category, consumers are asked to join a national campaign to bring competition to the supermarket sector. They are asked if they have noticed any items on supermarket shelves being replaced by the supermarket's own home brand items.

The website also calls for farmers and suppliers to tell any stories they may have about the ''ugly side of market power''. Shoppers can click on ''dob in a price scam'' when advertised pricing does not match the reality.

Choice chief executive Nick Stace tells visitors to the site that in Australia over 75 per cent of all packaged groceries are sold by Woolworths and Coles.

But the Australian Retailers Association, which represents Coles and Woolworths, said the sector had never been more competitive. ''The major supermarkets have worked hard to introduce more price transparency,'' chief executive Margy Osmond said.

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Sounds like a good initiative however if farmers and suppliers would not tell the "ugly" stories to the last ACCC enquiry, even in confidential sessions, why do Choice believe things will be different this time?
Posted by muzza, 15/03/2010 4:46:11 AM
I find the current structure quite OK. Locally there is naturally a Coles and Woolworths, plus independent fruit barns and butchers. Oh, and an Aldi. We use all of them to different degrees and for different purposes, with the fruit barn getting the lions share of our wallet. Bagging big business is good for publicity but in most cases there is ample opportunity for the consumer to purchase elsewhere.
Posted by JayDin, 15/03/2010 7:20:29 AM
Whats the problem, this is the level playing field that we told we must have!
Posted by tigerdicky, 15/03/2010 7:32:13 AM
Why not attack the reason for the high mark-up between farm gate and retail, excessive govt regulation
Posted by dunart, 15/03/2010 8:08:13 AM
Supermarkets saying they are reducing prices means one thing, supppliers getting less. I find supermarket comments offensive and simplistic to cover what they are really doing, weasel words.
Posted by Phil, 15/03/2010 8:45:08 AM
I used to work with vegetable producers who supplied coles / woolworths in a consultants role. those supplying hydroponic lettuce had to wash, fully sleeve, pack in shelf ready plastic crates and deliver to their warehouse- they got $8 / crate (from memory it had 12 head of lettuce in it). the retailer had to simply transport it to a store and take it off the pallet and put it on the shelf. one cant see a great cost in that. 8 divided by 12 = $0.66 / head. What is a common price to pay for a head of lettuce? Is it common to see them priced at $2.99 / head? Secondly, when Coles / Wool offer a discount to the market, they pass on the same discount % to the producers as part of their contracts... IS this a bully boy tactic?
Posted by time4change, 15/03/2010 9:58:18 AM
Bad news for Ozzy farmers, I'm afraid... Lower price at the supermarket means the producers will be pressed even lower. Or even worst - the chain looks at imports for the source. Anyone fancy Chineese grown salad? - It maybe not as far away I'm afraid.
Posted by Andrew, 15/03/2010 12:03:49 PM
Come on consumers - exercise your rights! Don't shop at the duopoly stores. and don't buy imported! If you can't buy an aussie orange, don't buy one at all! Don't just expect the giants to change - make them change. we need to practise what we preach. may sound idealistic, but at least it's action!
Posted by kirra, 15/03/2010 3:55:25 PM

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MULTIMEDIA
12 March, 2010
11 March, 2010
POLL
Q: Should the Federal Government step in and overhaul the corporate structure of Australian Wool Innovation?

Yes
(42.4%)

No
(43.3%)

Not yet
(14.3%)

Total Votes: 413
Poll Date: 07 March, 2010

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