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Rage against big supermarket chains.

By JessP - 5 August 2013 42

Let me say firstly I do not own a small business or know anyone who does but I am tired of seeing the big supermarket chains trying to destroy small business but lowering their prices for long periods to put them out of business. And then increasing their prices.

Case in point at the moment is Woolworths in Belconnen. A small shop selling fresh and cooked chicken openedover the last year or so. Competition seemed to go well, sometimes they were cheaper, more expensive or similar to WW but all seemed normal in the prcing swings and round-a-bouts. Until now. WW suddenly has fresh chicken on sale every week at a cheaper price. All the time.   And $2.40 cheaper than what it is selling for at other WW stores.

Belconnen has already lost the fruit and veg shop, I am hoping this retailer wont go the same way. 

Support competition – Support your local (non supermarket) stores.

What’s Your opinion?


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42 Responses to
Rage against big supermarket chains.
JimCharles 9:59 pm 06 Aug 13

IrishPete said :

Dunno about the UK reference. There are lots of chains (Tesco, Sainsbury’s, Asda, M&S) and their range, price and quality is awesome.
IP

M+S and Waitrose are an awesome standard, and a little more socially responsible. They’d fit in well here and drive the standard up.
The rest are the spawn of the devil, purely driving price and quality down and suppliers out of business in pursuit of ever increasing profit, wouldn’t touch them with a bargepole. I’m glad the Yanks have forced Tesco out of the US by turning their backs, good on them.

JC 9:31 pm 06 Aug 13

beardedclam said :

Shop Local. A lot of advantages in getting back to your local shops and supporting your community.

I eat that chicken all the time. I have never been sick and it tastes so good, or that could be Mrs Clam’s wonder sauce. Mini Clam likes it too and she is growing up strong and healthy.

Also, some of the Woolies stores, the newer smaller ones, offer the convenience but not the variety or value. That’s smart business I suppose, but this is exactly what the smaller corner stores used to do. Would be good if this revenue was going back into our local communities instead of large supermarket chains, with less of an interest in the locals.

Oh you mean like the small Woolworths at Dunlop? On land that was available for a smaller player to open on yet it took Woolworths to have the guts to buy and develop the land. Whilst the range is not good it is offering conveniance at big supermarket prices.

But yeah they are the badies

IrishPete 7:52 pm 06 Aug 13

JimCharles said :

Well, with Caltex they also take government fuel cards which seems to keep the price high as the users are not bothered about the fuel cost. I’d love to use my local independent Caltex more, but it’s normally just too expensive and in some weeks, they really do take the piss with insane pricing aimed at govvies…more than the cost of other petrol stations even if you don’t use a voucher (which i do not on principle).

Supermarkets are a necessary evil. Coming from a country where they’ve banked prime land for years and left it undeveloped, dragged local authorities through the courts to get permission to destroy the fabric of communities, decimated high streets and left them as boarded up units, or charity chops, or cash converter pawn shops, or bookies….the rich quality of Canberra bakers, butchers, grocers is wonderful. People just have to be careful to make sure they support them. Your profit will probably go back into Canberra, not offshored.
When that money gets taken out of the local economy, you’re on the slippery slope because that money isn’t there to come back to you in taxes, spending in restaurants, people spending in pubs, spending on facilities, getting a Raiders or Brumbies membership…everything drops a notch when a supermarket takes over and gobbles up independents because local money just disappears.

The unseen folly with supermarkets is that they compete to force independents out of business, then when there’s no competition left they drop the quality of the produce. You can get 8 bread rolls in a UK supermarket for a pound ($1.50?), but they’re full of air. If you don’t like that, good luck finding a decent baker of the quality you get here.
The meat cuts are cheap and small. The chicken breasts are tiny and force grown very quickly with supplements, so from birth to death they live 42 days and then you eat them.
If you don’t like that, there’s often no other option so you have LESS choice in what you buy.
I keep supermarkets for cereals, boxed goods, cordial, packaged spice mixes….everything fresh i try to get local.

Dunno about the UK reference. There are lots of chains (Tesco, Sainsbury’s, Asda, M&S) and their range, price and quality is awesome.

IP

FioBla 10:01 am 06 Aug 13

I think the applicable 3 word slogan would be “Keep Canberra Weird”. (Substitute Portland, or somewhere).

As for Woolies’ behaviour above, it’s like “I’m tired of the foxes eating my chickens”, which is a fine sentiment. But it’s the nature of the fox (Woolies).

Read the title and comments of the recent thread at: http://the-riotact.com/an-end-to-stalinist-supermarket-planning-now-incumbency-to-rule

curmudgery 10:01 am 06 Aug 13

Don’t forget the micro-competition. On the supermarket shelf you’ll find Well-Known-Brand sugar and next to that is the cheaper Budget-brand sugar – both supplied by Well-Known-Brand. In effect, Well-Known-Brand goes into competition with itself. This ensures that Well-Known-Brand gets all the
sales of sugar by keeping any genuine competition off the shelf – shelf space is gold.
Suppliers will offer the supermarket a price or other incentive to ensure they don’t get an attack of the guilts and start looking for a genuine alternative. This tactic is usually associated with high-volume items.

beardedclam 9:56 am 06 Aug 13

Shop Local. A lot of advantages in getting back to your local shops and supporting your community.

I eat that chicken all the time. I have never been sick and it tastes so good, or that could be Mrs Clam’s wonder sauce. Mini Clam likes it too and she is growing up strong and healthy.

Also, some of the Woolies stores, the newer smaller ones, offer the convenience but not the variety or value. That’s smart business I suppose, but this is exactly what the smaller corner stores used to do. Would be good if this revenue was going back into our local communities instead of large supermarket chains, with less of an interest in the locals.

Genie 9:53 am 06 Aug 13

I find it hard to believe that Woolworths was the sole reason the shop you mentioned closed down.

For example:

Small retailers in any Westfield around Australia would be paying a minimum of $10,000 a month in rent, plus I believe they have to also pay a percentage in their gross takings.

Retailers like Woolworths, Coles, Aldi, McDonalds, Myer etc are what are known are “drawcards” to the shopping centre. They bring the people in and pay next to no rent, if any at all.

Combine that with Woolworths buying power – of course they can sell stuff cheaper.

Thumper 8:36 am 06 Aug 13

Do what I do and make a concerted effort not to buy from Coles or Woolworths, no matter what the price.

Otherwise, in our glorious future, there will be two choices for pretty much everything, Coles and Woolworths. And of course, in this situation, there will be no price collusion will there be?

JimCharles 7:34 am 06 Aug 13

Well, with Caltex they also take government fuel cards which seems to keep the price high as the users are not bothered about the fuel cost. I’d love to use my local independent Caltex more, but it’s normally just too expensive and in some weeks, they really do take the piss with insane pricing aimed at govvies…more than the cost of other petrol stations even if you don’t use a voucher (which i do not on principle).

Supermarkets are a necessary evil. Coming from a country where they’ve banked prime land for years and left it undeveloped, dragged local authorities through the courts to get permission to destroy the fabric of communities, decimated high streets and left them as boarded up units, or charity chops, or cash converter pawn shops, or bookies….the rich quality of Canberra bakers, butchers, grocers is wonderful. People just have to be careful to make sure they support them. Your profit will probably go back into Canberra, not offshored.
When that money gets taken out of the local economy, you’re on the slippery slope because that money isn’t there to come back to you in taxes, spending in restaurants, people spending in pubs, spending on facilities, getting a Raiders or Brumbies membership…everything drops a notch when a supermarket takes over and gobbles up independents because local money just disappears.

The unseen folly with supermarkets is that they compete to force independents out of business, then when there’s no competition left they drop the quality of the produce. You can get 8 bread rolls in a UK supermarket for a pound ($1.50?), but they’re full of air. If you don’t like that, good luck finding a decent baker of the quality you get here.
The meat cuts are cheap and small. The chicken breasts are tiny and force grown very quickly with supplements, so from birth to death they live 42 days and then you eat them.
If you don’t like that, there’s often no other option so you have LESS choice in what you buy.
I keep supermarkets for cereals, boxed goods, cordial, packaged spice mixes….everything fresh i try to get local.

milkman 6:50 am 06 Aug 13

“Support competition – Support your local (non supermarket) stores”

Support competition, buy where it is best value.

JC 10:29 pm 05 Aug 13

ScienceRules said :

I agree. There is something not right about the duopoly of Coles/Woolies controlling so much of the retail landscape. It’s not just their supermarket outlets but also fuel and their ever increasing own brands.

Tthis situation is also just too damaging to suppliers like farmers and other producers and manufacturers. Essentially they control the whole supply chain of food and other essential products and it needs to be heel.

Can bust one myth here that Woolworths and Coles control the fuel market. Simple fact is except for SOME Woolworths stations Woolworths and Coles DO NOT own the petrol stations. With Coles all they do is brand Shell sopts and the fuel side accepts Coles discount vouchers. With Woolworths they own some stations and they brand SOME, but not all the shops in Caltex stations and again owned and co-branded sites accept Woolworths vouchers.

Around 20% of Caltex sites do not co-brand with Woolworths and are totally independent.

Aside from these two there are still heaps of BP, 7Eleven, United and independent stations around.

So far from a duopoly and far from control.

ScienceRules 9:21 pm 05 Aug 13

I agree. There is something not right about the duopoly of Coles/Woolies controlling so much of the retail landscape. It’s not just their supermarket outlets but also fuel and their ever increasing own brands.

Tthis situation is also just too damaging to suppliers like farmers and other producers and manufacturers. Essentially they control the whole supply chain of food and other essential products and it needs to be heel.

lostinbias 9:01 pm 05 Aug 13

So shop with a forward-thinking independent retailer which is growing in the ACT and NSW, then.

JC 6:45 pm 05 Aug 13

At the end of the day people vote with their feet and wallets. Personally I wouldn’t shop at the chicken shop you talk of. I brought from there once and was not happy with the chicken got sick after eating it.

As for the overall claim that the likes of Woolworths force the small guys out of business, have a good look around, especially in Belconnen and see how many supermarkets or shops Woolwoths (Coles and lets not forget Aldi have forced out). A few weeks ago there was a story in the Canberra times and in my reply to that I counted the number of supermarkets that have closed in Belconnen, and guess what not one, repeat not one could be linked to the opening of a Woolworths store. Macgregor supermarket closed years ago, Higgins recently the rest going reasonably strong. So really don’t see much corellation, all I see is the likes of Woolworths offering a product people want at the price and there is of course choice if I so wish. Take your fruit shop for example, just 500m up the road is a fruit market with 3 fruit shops, a chicken shop, three butchers and more.

curmudgery 5:47 pm 05 Aug 13

You mean like all those small hardware stores before Bunnings . . . ?

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