Scholarship Form

Submission on Market Study into the Retail Grocery Sector - Draft Report

As a representative of food producers (and consumers), Federated Farmers is keen to ensure that the retail grocery sector is competitive.   

It is concerning but perhaps not surprising that the Commission has found problems with how the market is operating. The draft report finds that the major retailers are enjoying ‘persistently high profits’ charging ‘high grocery prices when compared internationally’ with only ‘modest’ levels of innovation.  It says the major retailers appear to avoid competing strongly with each other, while competitors wanting to enter the market or wanting to expand face significant challenges.  Complexity of major retailers’ pricing strategies, promotions, and loyalty programmes can confuse consumers and make it harder for them to make informed purchasing decisions...
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