Vol. 1. No. 8. September 2011
Register on the Ausveg website at www.ausveg.com.auto access the latestinformation affecting thevegetable industry.
Re gi st er onl i ne t oday!
Woolworths posted a food and liquor sales increase for the 2010/11 year in by4.3 per cent to $36.2 billion, while Coles again reported a stronger lift of 6.3 per cent to $25 billion.Same-store sales growth, which is a measure of market share performance, for the fourth quarter eased for both retailers – Woolworths 3.3 per cent and Coles5.2 per cent – as both claimed different levels of deation. The same-store gapbetween the big two retailers has closed somewhat. However, the sales growthgap shows that Coles continued to gain market share above that of Woolworthsfor the eight consecutive calendar quarters.
What does this mean? Levels of competitive intensity in food retail will remainhigh between the two major supermarkets which will continue to maintain pressure on other food retailers. It also indicates that price-based promotional activity is likely to continue in the retail food market.
Ausveg is calling on all Australian vegetable exporters to participate in an Ausvegquestionnaire.The results of the questionnaire will enable Ausveg to send growers targetedinformation on the countries they export to, encouraging market access.The short questionnaire asks what commodities Australian growers exportoverseas and which countries growers export their produce to.The link to the questionnaire can be found on the Growcom web site.The Westpac Melbourne Institute Survey of Consumer Sentiment saw a2.6 per cent slip in June to 101.2, the lowest level recorded in two years.Westpac states that this fall was largely driven by concerns over jobprospects, taxes and the economic outlook.The component of the sentiment index reecting economic conditions for the next 12 months decreased the most. The index of conditions for thenext ve years dropped 3.7 per cent, while that for family nances easedby 2 per cent compared to a year ago.
What does this mean? Consumer concerns for personal nances and rising costs of living have settled into a pattern.
Consumer sentiment falls to two year low
Gap between the two majorsupermarkets narrows
Ausveg wants to hear fromvegetable exportersRetail priceintensity drawsin fruit and veg
The price led competition betweenthe major retail supermarkets,which to date has seen lower pricesfor staple items like milk, poultryand bread has now extended toinclude fruit and vegetables.Woolworths has announced inthe rst week of July that they willadopt a 12-month price freeze onred delicious apples $2.98 per kg, Truss Tomatoes $4.98 per kg,Carrots (1kg bag) $1.45, Onions(1kg bag) $1.88 and 4 kg BrushedPotatoes $4.98. As yet this has notdrawn a direct published responsefrom the other major retailers.
What does this mean? To date theseasonal price variations of fruit and vegetables has kept retailersaway from a long-term price promise. However, this move by Woolworths may change that and in doing so alter the promotional and pricing dynamics for thecategory.