Grocers struggle to keep doors open
GREENGROCERS and smaller supermarkets are among the casualties of Australia’s major food retailers’ fierce price war, with more than 10 per cent shutting up shop in a year.
The nation’s largest supermarket chains dominate the market in terms of revenue and smaller operators are finding it hard to remain competitive, according to a Bankwest report released this month, with 280 greengrocers and small supermarkets exiting the market in the 12 months to June 2016.
Bankwest acting general manager of business banking Robert Rees said competition was coming mainly from Coles and Woolworths but the arrival of international players such as Aldi, Kaufland and AmazonFresh would likely drive prices down even further.
The trend is a concern for wholesale fruit, vegetable and flower markets nationally, whose business relies heavily on greengrocers.
Melbourne Market Authority chief executive Mark Maskiell said about 45 per cent of Epping Market’s trade was from greengrocers.
Small supermarkets, providores and the hospitality industry made up the balance.