'Limited incentive' for Coles and Woolworths to compete vigorously on price, and margins have risen, ACCC finds
'Limited incentive' for Coles and Woolworths to compete vigorously on price, and margins have risen, ACCC finds
Australian supermarkets among world's most profitable, with 'limited incentive' to compete
Interesting reading the article. Would be good to see the complete ACCC report.
I swear there's a hole in the market here. A third option that was online-only with collection points/delivery services similar to Colesworth that undercut on price.
Startup costs would be massive, though not as much as trying to enter the market as a third retailer with physical stores in all the suburbs.
It could start with a few distribution nodes (warehouses) and grow out. Order online, go to warehouse to collect. The next step where you can distribute in more suburbs or deliver to homes is where it gets most difficult.
That was tried here, and the guy couldn't get contracts with suppliers. They didn't want to endanger their contracts with the Woolies and Foodstuffs.
Those sort of exclusivity deals should be made illegal.
Unfortunately, a Duopsony is just as destructive to the market as a Duopoly.
I think the hole is if there was a logistics company that could handle Aldi deliveries.
Aldi is a nice way to save, but, their fresh food selection is pretty meh, and often not great quality (as in, going mouldy fast, I don't care about how they look).
I usually pair going to Aldi and an Asian supermarket
Unfortunately delivery or transport probably ups costs… Which is why Aldi doesn’t deliver. Really sucks for someone who requires it
Home delivery services are a recent offering. What did these people do before about 5 years ago?
Well that, and immediately having wesfarmers trying to buy you out. Cf: catch