It's not often I support political activist groups - but this one's on a winner

[onetrack]

This takes the cake for nut-kicking political activism - Getup! has printed a large number of "fake" Woolworths discount cards - with a hard-hitting message - and are placing them on Woolworth shelves.

 

Their target is price gouging by grocery corporations - and in particular, the corporate CEO bonus system - which saw Woolies CEO get a $24M bonus last year. Note, that is their salary BONUS!! - not their salary!

 

I thought this kind of "unjust enrichment" was largely limited to banks. Obviously, not so - it now spreads far and wide throughout the corporate world.

 

https://www.perthnow.com.au/wa/perth/satirical-specials-tag-found-at-booragoon-supermarket-sparks-debate-about-price-gauging-c-21033223

 

Edited 12 hours ago by onetrack

[Jerry_Atrick]

What are the alternatives to Colesworths?

[rgmwa]

11 minutes ago, Jerry_Atrick said:

What are the alternatives to Colesworths?

IGA and ALDI are the main ones.

[Jerry_Atrick]

As I recall, IGA wasn't terribly much cheaper when I was there. I forgot about Aldi - they must be giving Colesworth a run for their money. The problem with them here is that they are a little inconsistent with their supplies outside the real mainstream. And if you want something that is not mainstream you are unlikely to be able to get it. Both of our kids had a mild intolerance to lactose, so they were brought up on goats milk and cheese. We couldn't get goats milk at Aldi nor Lidl (Aldi competitor), and we could only get the soft roll goats cheese, which is as bland as the wrapper it was contained in. So, we always ended up in one of the majors.

 

Australia is expensive - no doubt. But also, salaries are higher than most parts, and Australia has a small population over dispersed widely, real estate is artifically inflated and has a high cost base. Yep, the CEOs get good bonuses.  With a total revenuwe of over $70bn, $24m is a drop in the bucket. Whilst the corporates are charged with price gouging, it would be interesting to see what their cost base is and their profit magins. According to AI, their operating profit margin was 1.29% - for every dollar they took, their profit was 1.29 cents. I would suggest that is about average for an operating profit and wasn't much different at coles to when I worked at Coles Myer at the Tooronga Zoo (the head office in Tooronga, Melbourne, was affectionately known as the Tooronga Zoo by employees). 

 

Of course, they may have maginificent margins and baked in ineffeciencies they have little reason to change.. but somehow I don't think that is the case. 

 

Our parliamentary committees are also a little behiond the 8 ball. They asked why Woolies sold Tim Tams for more in Aus than the UK was selling them. Of course the answer would have been to ask the manufacturer, hopefully for obvious reasons. What hey should be focusing on is the numbers - and looking for lagesse within the firm. 

 

The supermarket industry is highly competitive in teh UK and there may be more incentives for local buyers to drive a much tougher bargain, also on potential market reach and overal profit than there is in Australia

 

I was thinking if supermarkets are so proftiable in Australia, why don't other cashed up competitors enter the market.. It may not be as good a return as made out by the press. 

Edited 9 hours ago by Jerry_Atrick

[rgmwa]

1 hour ago, Jerry_Atrick said:

I forgot about Aldi - they must be giving Colesworth a run for their money. The problem with them here is that they are a little inconsistent with their supplies outside the real mainstream.

When someone was asked how they were coping with all the stress and anxiety and uncertainty caused by the constantly changing Covid medical advice and lockdowns, they said " No problem, I'm used to all that. I shop at Aldi."