Archive for June, 2011

In Australia, supermarket chains Coles and Woolworths appear to be nothing more than an extortion racket, and those outside the eastern seaboard are captive to them.

Independent supermarkets don’t have the power to properly challenge them, and politicians won’t legislate to challenge them.

From politics there is only spin and rhetoric that bemoans (lip service) the duopoly of Coles and Woollies. The only viable challenger to this situation is a chain that consistently has lower prices across the board… a chain like (the new kid on the block) Aldi, but Aldi will not let go of the security blanket of the Eastern states.

How does Aldi benefit by this?

Stories of how increased competition between the supermarket chains in the eastern states are regular occurrences on television. As the major networks are based in either Melbourne or Sydney, these stories include how Aldi are affecting the pricing of the behemoths Coles and Wollies. These stories, for those outside of the eastern states, do nothing more than to rub the faces of those struggling with grocery prices into their captivity of the two large chains.

The newspapers are the same. read a story in the local newspaper’s website, and there will be links to related stories in newspapers in other cities – like in Brisbane, or Sydney.

It is clear how Coles and Woolworths benefit by this arrangement. In places where there is no serious competition, they can price largely how they like… but put an aldi (or an Aldi-like) supermarket in place for competition, you get cheaper groceries.

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