Gro­cery bat­tle for fresh

Tasmanian Country - - NEWS -

FRESH pro­duce will take cen­tre stage in Aus­tralian su­per­mar­kets’ fight for mar­ket dom­i­nance, ac­cord­ing to a re­port by UBS.

The bank’s sur­vey of more than 1100 Aus­tralian gro­cery shop­pers found that fresh­ness was the key bat­tle­ground in the Aus­tralian gro­cery mar­ket as re­tail­ers move away from fo­cus­ing on low prices.

And this could her­ald good news for grow­ers sup­ply­ing the ma­jor re­tail­ers.

James White­side, chief ex­ec­u­tive of veg­etable grower body Ausveg, was pleased to hear fresh pro­duce was at­tract­ing shop­pers.

“If low prices aren’t seen as a dif­fer­en­tia­tor be­tween re­tail­ers any more, and the ma­jor su­per­mar­kets are con­tin­u­ing to in­vest in the qual­ity and width of their fresh pro­duce ranges, we’d ex­pect that this will lessen the down­ward pres­sures on far­m­gate prices,” Mr White­side said.

The UBS anal­y­sis of spend­ing changes in Fe­bru­ary found price as a driver of spend is de­creas­ing. Low prices are be­com­ing an ac­cepted part of a shop, not a dif­fer­en­tia­tor.

Coles and Wool­worths recorded strong gains in mar­ket share for fresh pro­duce pur­chases, largely at the ex­pense of IGA and spe­cial­ist re­tail­ers.

“We be­lieve this re­flects con­tin­ued in­vest­ment in fresh qual­ity and range by the ma­jors [and Aldi], which has marginalised the ad­van­tage of many in­de­pen­dents and spe­cial­ists,” the re­port said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.