Comment on Albanese invites Arab 'hypermarket' to compete with Coles and Woolworths

• thatKamGuy@sh.itjust.works ⁨1⁩ ⁨month⁩ ago

  I am in no way, shape or form saying it is? Just stating a fact - this is a practise called price anchoring.

  The comment I was replying to was trying to use it as an example of supermarket greed & price gouging - when it’s really just a way to make the price they actually expect to sell it at (with the regular 40-50% discount) seem like a great deal in comparison.

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  • princessnorah@lemmy.blahaj.zone ⁨1⁩ ⁨month⁩ ago

    Yeah, you’re right, these huge duopoly corporations aren’t greedy at all, my mistake.

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    • thatKamGuy@sh.itjust.works ⁨1⁩ ⁨month⁩ ago

      Coles and Woolworths have pretty consistently posted Net Profits of ~5-6% for over the past decade (probably longer, I CBF checking).

      Meanwhile Coca Cola most recently posted a Net Profit of ~22.6%; PepsiCo, Mondelez & Kraft-Heinz all post Net Profits of ~10-12%, while all avoiding paying Australian taxes - but nah, the Supermarkets are the ones being greedy.

      I return to my original point; the reason why people are feeling the pinch at the checkout lane is predominantly because their discretionary spending funds have been annihilated directly (and indirectly) by skyrocketing property prices.

      Everything else, including this baseless discussion on how just adding one more supermarket chain to the Australian market will somehow miraculously solve the current affordability crisis, is just theatre to distract from the actual underlying issue.

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      • princessnorah@lemmy.blahaj.zone ⁨1⁩ ⁨month⁩ ago

        but nah, the Supermarkets are the ones being greedy.

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      • Taleya@aussie.zone ⁨1⁩ ⁨month⁩ ago

        coles literally posted a revenue increase last year. wat.

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  • Taleya@aussie.zone ⁨1⁩ ⁨month⁩ ago

    except BigW doesnt’ price anchor like that. Still woolworths group.

    Woolworths group are literally pushing the prices to see how far they can go. They set at one chain where it’s less expected that groceries would be bought, and then ram the shit out of the prices at grocery stores because they know it’s more likely to get picked up. Business practise? yes. Also greed.

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    • thatKamGuy@sh.itjust.works ⁨1⁩ ⁨month⁩ ago

      Except, that they do? Go back to the Big W link you posted earlier - they’re back up to the MSRP:

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      It’s something that every company does, because if a product is permanently ’on sale’, then they run the risk of being fined (maybe by the ACCC? I’m not quite sure which body is in charge) for false advertising. There are strict guidelines that dictate what a product must be at the “was price” for a certain length of time, within a certain timeframe.

      It’s not just Coles and Woolworths that do this; every other retailer is equally culpable: JB HiFi, Bunnings, Myer, Kmart, Chemist Warehouse etc.

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