Australians eating less is hurting the supermarkets

You’ve been told by the government that everyone will need to tighten their belts financially and for your health.  Now

You’ve been told by the government that everyone will need to tighten their belts financially and for your health.  Now it’s being claimed that this tightening is hurting the supermarkets.  Is there ever a place where everyone wins?

The tightening of household budgets for various reasons, lower income or saving, has shown to be putting the “squeeze” on the sale of food.  Retail sales growth is down to 2.5% growth from 3.3% the previous year.

An economic analysis group told Business Insider Australia “While supermarkets have survived the competitive environment by pushing down supplier prices, costs may not have much further to fall, and profits are being squeezed”.  They also added, “Supermarket and catered food operators are now relying on population growth to increase their sales, as real retail turnover per capita decreases.”

Another factor that hurt the profits of Woolworths and Coles is their fight to keep customers from shifting over to stores such as Aldi.

While the trend means that some retailers will be forced to lower prices on some goods even further to attract you into the store, it could also mean that prices across the board on other items might uniformly increase to keep the companies profitable.

The major supermarkets have always relied on population growth also to help in the retail growth but are learning that other avenues are going to have to look at.

What are some of the ways that supermarkets could get you to shop with them?  Are you a supporter of a particular store?

  1. Jarrad  

    It took Woolies’ nearly a year to realize that whomsoever made the decision to ‘opt out’ of allowing their customers’ to obtain Qantas Freq Flyer Points, with their shopping, REALLY stuffed up!

    The customers’ left in droves’, & all that ‘goodwill’ that had been created, since the scheme was started, was lost!

    Now, their trying extremely hard, to ‘claw back’ those customers’.
    Trouble is, once they’re gone, it’ll be an uphill battle to get them back!
    AND more money’s going to be spent by Woolies’, when they ‘had’ the customers’, in the first place, but let them go, because they didn’t want to pay Qantas for the customers’ ‘points’!
    It would’ve been cheaper doing that, rather than what they’re having to do, now!

    What ‘fools’ they’ve been!

    • [email protected]  

      I agree with Jarrad. I have also noticed over the last 12 months that the carpark at our local centre has become considerably quieter, especially on the traditionally busy shopping day of Thursday. In my view all retailers are suffering.

  2. Donice Keenan  

    I ended years of shopping with the two majors recently when ALDI came to Adelaide. I like their style of shopping and products plus the fact they save me $$$ is a big bonus.

    As a single person I was highly annoyed at what I saw as discrimination against singles with the constant advertising of 2 for offers. Ok , this might suit families but why should I buy 2 for when I only need one and be penalised by paying full price for my one item .

    There are a hell of a lot of single person households in Australia and I feel we were / are being ignored by the majors in their search for ‘ volume sales’

    Fortunately with ALDI coming to SA I’ve had the chance to vote with my wallet and the majors have certainly lost me .

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