The consumer watchdog's hotly anticipated report into Australian supermarkets concludes the two major players have so much power, they don't need to compete "vigorously", but the ACCC stopped short of declaring grocery prices excessive.
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.
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
If they are house-bound, organise with a local taxi driver to get to the shop and get some things for them.
If they are mostly-mobile, same thing, but organise a drop off and pickup time and get a hand with getting groceries into the house and up stairs, etc.
A lot of the older “career” drivers will happily do regular stuff like this. Especially during the middle of the day in suburbia when it’s pretty quiet. Beats sitting at a taxi rank reading the paper.
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.
They are illegal.
But by the time the courts have heard the case, the business is already bust.
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?
If they are house-bound, organise with a local taxi driver to get to the shop and get some things for them.
If they are mostly-mobile, same thing, but organise a drop off and pickup time and get a hand with getting groceries into the house and up stairs, etc.
A lot of the older “career” drivers will happily do regular stuff like this. Especially during the middle of the day in suburbia when it’s pretty quiet. Beats sitting at a taxi rank reading the paper.
The customers or the supermarkets?
I meant customers, but Dave has already answered.
Well that, and immediately having wesfarmers trying to buy you out. Cf: catch