Who’s to blame? Coles points fingers over high prices in Senate inquiry
- Replies 32
Have you noticed your grocery bills increasing lately? You're not alone. The cost of living is a hot topic for Australians, especially for those in their golden years who are trying to stretch their retirement savings.
But who's to blame for these rising costs? According to Coles, one of Australia's largest supermarket chains, it's not them.
Instead, they're pointing the finger at suppliers and farmers.
In a recent submission to a parliamentary inquiry on supermarket prices, Coles revealed that they have been receiving an average of more than 70 requests weekly for price increases from suppliers and farmers.
This is almost double the number of requests they were receiving just a few years ago.
Coles suggests that they too are grappling with the same cost pressures that households are facing.
Increased energy, labour, logistics, and packaging costs are all contributing to the rising prices of goods.
Coles told the inquiry, led by Greens Senator Nick McKim, that for every $100 of operating revenue earned, they need at least $73.09 to be spent on buying and getting the products to stores, with the majority of this money going to suppliers.
The next highest expenditures are the wages and benefits, accounting for $11.87 out of every $100.
‘We highly value these long-term partnerships and it is our ambition to continue to build on these successes and contribute to the long-term sustainability of our valued suppliers,’ Coles said.
The supermarket giant also said that its suppliers are subject to the same cost pressures that households in Australia are having trouble with.
‘We work constructively with our suppliers on promotional campaigns to offer great value to customers and to limit or defer the impact of supplier cost price increases to keep costs low for customers,’ the submission said.
However, not everyone agrees with Coles' explanation as leading economist and former Australian Competition and Consumer Commission (ACCC) Chairman, Allan Fels, has suggested that supermarkets are among the businesses that overcharge consumers by leveraging a lack of competition in the market.
He noted that when costs rise, business prices skyrocket, but when they fall, prices are very slow to come back down.
The ACCC has been keeping a close eye on the supermarket industry for many years, investigating allegations of anti-competitive behaviour and price fixing.
However, proving these allegations can be difficult, and the ACCC has often been criticised for not doing enough to protect consumers and small businesses.
Meanwhile, Coles was also accused of doing some sneaky changes to their supermarket aisles before the said senate inquiry.
While it's clear that there are many factors contributing to the rising cost of groceries, it's also clear that more needs to be done to ensure a fair and competitive market.
This includes holding supermarkets accountable for their pricing practices and ensuring they are not abusing their market power at the expense of suppliers, farmers, and ultimately, consumers.
What are your thoughts on this issue, dear readers? Have you noticed a significant increase in your grocery bills?
Share your experiences and thoughts in the comments below. We'd love to hear from you!
But who's to blame for these rising costs? According to Coles, one of Australia's largest supermarket chains, it's not them.
Instead, they're pointing the finger at suppliers and farmers.
In a recent submission to a parliamentary inquiry on supermarket prices, Coles revealed that they have been receiving an average of more than 70 requests weekly for price increases from suppliers and farmers.
This is almost double the number of requests they were receiving just a few years ago.
Coles is now under a Senate inquiry due to accusations of price gouging under a cost-of-living crisis in Australia. Image: Youtube
Coles suggests that they too are grappling with the same cost pressures that households are facing.
Increased energy, labour, logistics, and packaging costs are all contributing to the rising prices of goods.
Coles told the inquiry, led by Greens Senator Nick McKim, that for every $100 of operating revenue earned, they need at least $73.09 to be spent on buying and getting the products to stores, with the majority of this money going to suppliers.
The next highest expenditures are the wages and benefits, accounting for $11.87 out of every $100.
‘We highly value these long-term partnerships and it is our ambition to continue to build on these successes and contribute to the long-term sustainability of our valued suppliers,’ Coles said.
The supermarket giant also said that its suppliers are subject to the same cost pressures that households in Australia are having trouble with.
‘We work constructively with our suppliers on promotional campaigns to offer great value to customers and to limit or defer the impact of supplier cost price increases to keep costs low for customers,’ the submission said.
However, not everyone agrees with Coles' explanation as leading economist and former Australian Competition and Consumer Commission (ACCC) Chairman, Allan Fels, has suggested that supermarkets are among the businesses that overcharge consumers by leveraging a lack of competition in the market.
He noted that when costs rise, business prices skyrocket, but when they fall, prices are very slow to come back down.
The ACCC has been keeping a close eye on the supermarket industry for many years, investigating allegations of anti-competitive behaviour and price fixing.
However, proving these allegations can be difficult, and the ACCC has often been criticised for not doing enough to protect consumers and small businesses.
Meanwhile, Coles was also accused of doing some sneaky changes to their supermarket aisles before the said senate inquiry.
While it's clear that there are many factors contributing to the rising cost of groceries, it's also clear that more needs to be done to ensure a fair and competitive market.
This includes holding supermarkets accountable for their pricing practices and ensuring they are not abusing their market power at the expense of suppliers, farmers, and ultimately, consumers.
What are your thoughts on this issue, dear readers? Have you noticed a significant increase in your grocery bills?
Share your experiences and thoughts in the comments below. We'd love to hear from you!
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