It’s apparent that supermarket prices are continuously rising.

However, according to the Reserve Bank of Australia (RBA), supermarkets are able to pull off cashing in on their customers because, quite frankly, customers have no other options.

Research done by economists Callan Windsor and Max Zang studied earnings calls—dating back to 2007—wherein market analysts and journalists ask big corporations about their latest results.

Supermarkets are able to increase their prices and get away with it as consumers depended on their products. Image source: aleksandarlittlewolf on Freepik.

The transcripts of these earnings calls said supermarkets were more likely to be able to bring up prices during a supply shock or crisis period but still get away with it since consumers depended on their products.

The research also highlighted how supermarkets, along with meat, fruit and vegetable suppliers, are less likely to see a decrease in demand for their products despite price increases due to bad weather, supply chain disruption, or a pandemic.

It’s worth noting that supermarket giants Coles and Woolworths were not explicitly mentioned in the research or accused of any wrongdoing. However, both supermarkets have a 65 per cent market share, with an estimated 27.9 for Coles and 37.1 for Woolworths based on data from Statista, and have seen their profits rise during the cost of living crisis. ALDI has 9.5 per cent of the market, ahead of IGA's 6.9 per cent.

The Woolworths Group, which includes discount store BIG W, last month announced a $1.6 billion profit in the year to June, up by 4.6 per cent. Their revenue rose 5.7 per cent, now at $64.29 billion.

A day earlier, Coles announced its net profit after tax for the year to June 25 surged by 4.8 per cent to $1.1 billion in the year to June. Their revenue is now up by 5.9 per cent at $40.5 billion.

Overall, the July inflation rate was 4.9 per cent down from 5.4 per cent in June and the lowest annual level since February 2022.

But despite this, consumers continue to feel the pinch in their pockets with bread, cereal, dairy, education, rent, health, and other costs continuously rising, based on data from the Australian Bureau of Statistics.

You can see a summary of the different costs below:

Supermarket inflation also increased by 6.7 per cent, which was well above the 1.7 per cent level Coles reported for the 2021-22 financial year and Australia’s broader consumer price index.

Despite the ease in supply chain pressures, the RBA research predicted that higher input costs (especially for imported components) may keep consumer prices high.

'Firms’ price-setting sentiment also appears more sensitive to rising input costs compared to falling costs, suggesting that prices could remain front-of-mind for company executives even as supply pressures ease,' the researchers said.

An increase in wages while unemployment is at low levels was also unlikely to cause price hikes.

'Discussions around final prices have become more sensitive to import costs but less sensitive to labour costs in the period since 2021,' the researchers added.

Furthermore, the Reserve Bank of Australia is expecting inflation to remain on top of its 2 to 3 per cent target until June 2025.

Key Takeaways

• A research paper by the Reserve Bank of Australia (RBA) has revealed that supermarkets are able to increase prices during a supply shock and face no significant decline in demand, as customers depend on their products.
  
• The paper analysed transcripts of earnings calls dating back to 2007, demonstrating that supermarkets, as well as meat, fruit and vegetable suppliers, maintain a consistent demand, regardless of price hikes due to circumstances like bad weather or disruptions such as COVID-19.
  
• Although not named in the research, Coles and Woolworths are highlighted due to their combined 65 per cent market share, and reported profit increases during the cost of living crisis.
  
• Despite an easing in supply chain pressures, the RBA paper predicts that higher input costs, particularly for imported components, could keep consumer prices high.
  

What are your thoughts on this matter, dear members? Do you have tips that could help other shoppers stretch their dollars further? Let us know in the comments below!

 

[kevinwoodtufftyke52@gmail]

It’s apparent that supermarket prices are continuously rising.

However, according to the Reserve Bank of Australia (RBA), supermarkets are able to pull off cashing in on their customers because, quite frankly, customers have no other options.

Research done by economists Callan Windsor and Max Zang studied earnings calls—dating back to 2007—wherein market analysts and journalists ask big corporations about their latest results.

View attachment 29820

Supermarkets are able to increase their prices and get away with it as consumers depended on their products. Image source: aleksandarlittlewolf on Freepik.

The transcripts of these earnings calls said supermarkets were more likely to be able to bring up prices during a supply shock or crisis period but still get away with it since consumers depended on their products.

The research also highlighted how supermarkets, along with meat, fruit and vegetable suppliers, are less likely to see a decrease in demand for their products despite price increases due to bad weather, supply chain disruption, or a pandemic.

It’s worth noting that supermarket giants Coles and Woolworths were not explicitly mentioned in the research or accused of any wrongdoing. However, both supermarkets have a 65 per cent market share, with an estimated 27.9 for Coles and 37.1 for Woolworths based on data from Statista, and have seen their profits rise during the cost of living crisis. ALDI has 9.5 per cent of the market, ahead of IGA's 6.9 per cent.

The Woolworths Group, which includes discount store BIG W, last month announced a $1.6 billion profit in the year to June, up by 4.6 per cent. Their revenue rose 5.7 per cent, now at $64.29 billion.

A day earlier, Coles announced its net profit after tax for the year to June 25 surged by 4.8 per cent to $1.1 billion in the year to June. Their revenue is now up by 5.9 per cent at $40.5 billion.

Overall, the July inflation rate was 4.9 per cent down from 5.4 per cent in June and the lowest annual level since February 2022.

But despite this, consumers continue to feel the pinch in their pockets with bread, cereal, dairy, education, rent, health, and other costs continuously rising, based on data from the Australian Bureau of Statistics.

You can see a summary of the different costs below:

Supermarket inflation also increased by 6.7 per cent, which was well above the 1.7 per cent level Coles reported for the 2021-22 financial year and Australia’s broader consumer price index.

Despite the ease in supply chain pressures, the RBA research predicted that higher input costs (especially for imported components) may keep consumer prices high.

'Firms’ price-setting sentiment also appears more sensitive to rising input costs compared to falling costs, suggesting that prices could remain front-of-mind for company executives even as supply pressures ease,' the researchers said.

An increase in wages while unemployment is at low levels was also unlikely to cause price hikes.

'Discussions around final prices have become more sensitive to import costs but less sensitive to labour costs in the period since 2021,' the researchers added.

Furthermore, the Reserve Bank of Australia is expecting inflation to remain on top of its 2 to 3 per cent target until June 2025.

Key Takeaways

• A research paper by the Reserve Bank of Australia (RBA) has revealed that supermarkets are able to increase prices during a supply shock and face no significant decline in demand, as customers depend on their products.
• The paper analysed transcripts of earnings calls dating back to 2007, demonstrating that supermarkets, as well as meat, fruit and vegetable suppliers, maintain a consistent demand, regardless of price hikes due to circumstances like bad weather or disruptions such as COVID-19.
• Although not named in the research, Coles and Woolworths are highlighted due to their combined 65 per cent market share, and reported profit increases during the cost of living crisis.
• Despite an easing in supply chain pressures, the RBA paper predicts that higher input costs, particularly for imported components, could keep consumer prices high.

What are your thoughts on this matter, dear members? Do you have tips that could help other shoppers stretch their dollars further? Let us know in the comments below!

GREED IS NOT GOOD!

 

[PeeBo]

The irony with supermarkets is that the base cost never alters no matter what they sell. If you pull a potato from the ground, pick a tomato or fruit. The basic cost never changes, hence why you should do so if you can grow your own or support a farmer's gate. The cost we are forced to pay at the checkout is packaging, which is over the top, the advertising on that packaging, negotiator's wages and the many hands the supply goes through, not to mention fuel costs throughout the process from land to shelf and the greed/demand of investors.
Everything about supply is basically done through investors. What happened to the times when you owned a business through hard work? There was no need for investors in those days, so why and how has Big Brother gotten away with it? Because mankind has become too damned lazy and greedy, and almost everyone is infected by it, believing the hype that convenience is cheaper.

 

[ToniaKisliakov]

It’s apparent that supermarket prices are continuously rising.

However, according to the Reserve Bank of Australia (RBA), supermarkets are able to pull off cashing in on their customers because, quite frankly, customers have no other options.

Research done by economists Callan Windsor and Max Zang studied earnings calls—dating back to 2007—wherein market analysts and journalists ask big corporations about their latest results.

View attachment 29820

Supermarkets are able to increase their prices and get away with it as consumers depended on their products. Image source: aleksandarlittlewolf on Freepik.

The transcripts of these earnings calls said supermarkets were more likely to be able to bring up prices during a supply shock or crisis period but still get away with it since consumers depended on their products.

The research also highlighted how supermarkets, along with meat, fruit and vegetable suppliers, are less likely to see a decrease in demand for their products despite price increases due to bad weather, supply chain disruption, or a pandemic.

It’s worth noting that supermarket giants Coles and Woolworths were not explicitly mentioned in the research or accused of any wrongdoing. However, both supermarkets have a 65 per cent market share, with an estimated 27.9 for Coles and 37.1 for Woolworths based on data from Statista, and have seen their profits rise during the cost of living crisis. ALDI has 9.5 per cent of the market, ahead of IGA's 6.9 per cent.

The Woolworths Group, which includes discount store BIG W, last month announced a $1.6 billion profit in the year to June, up by 4.6 per cent. Their revenue rose 5.7 per cent, now at $64.29 billion.

A day earlier, Coles announced its net profit after tax for the year to June 25 surged by 4.8 per cent to $1.1 billion in the year to June. Their revenue is now up by 5.9 per cent at $40.5 billion.

Overall, the July inflation rate was 4.9 per cent down from 5.4 per cent in June and the lowest annual level since February 2022.

But despite this, consumers continue to feel the pinch in their pockets with bread, cereal, dairy, education, rent, health, and other costs continuously rising, based on data from the Australian Bureau of Statistics.

You can see a summary of the different costs below:

Supermarket inflation also increased by 6.7 per cent, which was well above the 1.7 per cent level Coles reported for the 2021-22 financial year and Australia’s broader consumer price index.

Despite the ease in supply chain pressures, the RBA research predicted that higher input costs (especially for imported components) may keep consumer prices high.

'Firms’ price-setting sentiment also appears more sensitive to rising input costs compared to falling costs, suggesting that prices could remain front-of-mind for company executives even as supply pressures ease,' the researchers said.

An increase in wages while unemployment is at low levels was also unlikely to cause price hikes.

'Discussions around final prices have become more sensitive to import costs but less sensitive to labour costs in the period since 2021,' the researchers added.

Furthermore, the Reserve Bank of Australia is expecting inflation to remain on top of its 2 to 3 per cent target until June 2025.

Key Takeaways

• A research paper by the Reserve Bank of Australia (RBA) has revealed that supermarkets are able to increase prices during a supply shock and face no significant decline in demand, as customers depend on their products.
• The paper analysed transcripts of earnings calls dating back to 2007, demonstrating that supermarkets, as well as meat, fruit and vegetable suppliers, maintain a consistent demand, regardless of price hikes due to circumstances like bad weather or disruptions such as COVID-19.
• Although not named in the research, Coles and Woolworths are highlighted due to their combined 65 per cent market share, and reported profit increases during the cost of living crisis.
• Despite an easing in supply chain pressures, the RBA paper predicts that higher input costs, particularly for imported components, could keep consumer prices high.

What are your thoughts on this matter, dear members? Do you have tips that could help other shoppers stretch their dollars further? Let us know in the comments below!

 

[ToniaKisliakov]

Wrong
Customers do have a choice

 

[Trudi]

The irony with supermarkets is that the base cost never alters no matter what they sell. If you pull a potato from the ground, pick a tomato or fruit. The basic cost never changes, hence why you should do so if you can grow your own or support a farmer's gate. The cost we are forced to pay at the checkout is packaging, which is over the top, the advertising on that packaging, negotiator's wages and the many hands the supply goes through, not to mention fuel costs throughout the process from land to shelf and the greed/demand of investors.
Everything about supply is basically done through investors. What happened to the times when you owned a business through hard work? There was no need for investors in those days, so why and how has Big Brother gotten away with it? Because mankind has become too damned lazy and greedy, and almost everyone is infected by it, believing the hype that convenience is cheaper.

The base cost never changes? Right! The cost of seed potatoes, etc does not increase in you mind? What about the cost of fertilizer? Or the cost of fuel to run tractors and other vehicles on the farm? What about the cost of purchasing a farm? What about the cost of wages?

As for buying at the farm gate, you used to be able to get cheap cherries at the farm gate in Young. So a couple of years ago I drove there with the intention to buy some, only to find that the cherries cost as much as the supermarkets charged and were most likely the cherries the supermarkets rejected. I left in disgust.

 

[Chezz 5]

The reduction in size of the Cottees marmalade is huge. Of course, they have had it on special, but that won't last long.

 

[Glenys R]

I have no choice other than to shop at Woollies. Some items go up every 2 weeks by a huge amount. Pikelets for example $2.00, then 2.20 - 2.50 - now 2.80 - All in the space of about 6 weeks. I suggested to an employee that the manager must have mag. wheels on his luxury car - was told he was struggling as much as I was!! Doubt it very much!!!

 

[Ricki]

I have no choice other than to shop at Woollies. Some items go up every 2 weeks by a huge amount. Pikelets for example $2.00, then 2.20 - 2.50 - now 2.80 - All in the space of about 6 weeks. I suggested to an employee that the manager must have mag. wheels on his luxury car - was told he was struggling as much as I was!! Doubt it very much!!!

The price increases are not going into the employees pockets nor the managers. Head office dictates to the store's. The shareholders are the ones benefiting.

 

[Loubeauxarts]

Let's face it Guys, we have only ourselves to blame. We, collectively, accepted the hype of the 1970's and allowed the supermarkets to starve out the small corner shops etc. Then, to add fuel to the fire, the few that had survived the battle fought back by having extended trading hours. What did the supermarkets do? They lobbied the government to get increased trading hours so that the convenience stores no longer had that lifeline. I'm not one for conspiracy theories but, in these times, the pattern can't be ignored.
Look how almost all neighbourhood hardware stores have disappeared and Bunnings has mega-stores everywhere. Good fish & chip shops are virtually non existent now but every suburb has a McDonald's or a Hungry Jacks churning out garbage and charging what they want because the competition is gone.
Not to mention the local newsagents who, because of progress, are now relegated to selling cigarettes and Lotto tickets. You want stationery, a calculator or art supplies check your local Officeworks.
The list is virtually endless and, as I said earlier, we have only ourselves to blame. The writing was on the wall but we chose to ignore it, all for the sake of convenience - end of rant

 

[Shane/#]

It’s apparent that supermarket prices are continuously rising.

However, according to the Reserve Bank of Australia (RBA), supermarkets are able to pull off cashing in on their customers because, quite frankly, customers have no other options.

Research done by economists Callan Windsor and Max Zang studied earnings calls—dating back to 2007—wherein market analysts and journalists ask big corporations about their latest results.

View attachment 29820

Supermarkets are able to increase their prices and get away with it as consumers depended on their products. Image source: aleksandarlittlewolf on Freepik.

The transcripts of these earnings calls said supermarkets were more likely to be able to bring up prices during a supply shock or crisis period but still get away with it since consumers depended on their products.

The research also highlighted how supermarkets, along with meat, fruit and vegetable suppliers, are less likely to see a decrease in demand for their products despite price increases due to bad weather, supply chain disruption, or a pandemic.

It’s worth noting that supermarket giants Coles and Woolworths were not explicitly mentioned in the research or accused of any wrongdoing. However, both supermarkets have a 65 per cent market share, with an estimated 27.9 for Coles and 37.1 for Woolworths based on data from Statista, and have seen their profits rise during the cost of living crisis. ALDI has 9.5 per cent of the market, ahead of IGA's 6.9 per cent.

The Woolworths Group, which includes discount store BIG W, last month announced a $1.6 billion profit in the year to June, up by 4.6 per cent. Their revenue rose 5.7 per cent, now at $64.29 billion.

A day earlier, Coles announced its net profit after tax for the year to June 25 surged by 4.8 per cent to $1.1 billion in the year to June. Their revenue is now up by 5.9 per cent at $40.5 billion.

Overall, the July inflation rate was 4.9 per cent down from 5.4 per cent in June and the lowest annual level since February 2022.

But despite this, consumers continue to feel the pinch in their pockets with bread, cereal, dairy, education, rent, health, and other costs continuously rising, based on data from the Australian Bureau of Statistics.

You can see a summary of the different costs below:

Supermarket inflation also increased by 6.7 per cent, which was well above the 1.7 per cent level Coles reported for the 2021-22 financial year and Australia’s broader consumer price index.

Despite the ease in supply chain pressures, the RBA research predicted that higher input costs (especially for imported components) may keep consumer prices high.

'Firms’ price-setting sentiment also appears more sensitive to rising input costs compared to falling costs, suggesting that prices could remain front-of-mind for company executives even as supply pressures ease,' the researchers said.

An increase in wages while unemployment is at low levels was also unlikely to cause price hikes.

'Discussions around final prices have become more sensitive to import costs but less sensitive to labour costs in the period since 2021,' the researchers added.

Furthermore, the Reserve Bank of Australia is expecting inflation to remain on top of its 2 to 3 per cent target until June 2025.

Key Takeaways

• A research paper by the Reserve Bank of Australia (RBA) has revealed that supermarkets are able to increase prices during a supply shock and face no significant decline in demand, as customers depend on their products.
• The paper analysed transcripts of earnings calls dating back to 2007, demonstrating that supermarkets, as well as meat, fruit and vegetable suppliers, maintain a consistent demand, regardless of price hikes due to circumstances like bad weather or disruptions such as COVID-19.
• Although not named in the research, Coles and Woolworths are highlighted due to their combined 65 per cent market share, and reported profit increases during the cost of living crisis.
• Despite an easing in supply chain pressures, the RBA paper predicts that higher input costs, particularly for imported components, could keep consumer prices high.

What are your thoughts on this matter, dear members? Do you have tips that could help other shoppers stretch their dollars further? Let us know in the comments below!

PROFIT AND GREED ,THE CUSTOMER WILL BE SCREWED OVER EVERYTIME AND LOYALTY IS A THING OF THE PAST

 

[Trudi]

The price increases are not going into the employees pockets nor the managers. Head office dictates to the store's. The shareholders are the ones benefiting.

When you run a business, regardless of whether it is a large supermarket or a small corner store, you need to invest money before the business earns you money. There are rental, power, security, supply, staff, etc; costs that need to be covered from sales before any profits can be made.

It may surprise you that the return for shareholders is nowhere nearly as high as you appear to imagine and, of course, there is nothing to stop you from buying shares if you believe that it is the road to riches.

I checked today's share price for Coles, it is $15.75 and has been around this level for quite some time. Dividends for the year are 36 cents interim and 30 cents final - a total of 66 cents. This is the amount that is paid to shareholders for each share they hold and represents 4.2% return on the investment.

Of course, Australian shareholders are also credited with franking credits, that is the tax that already been paid by the company and which has to be declared by the shareholder as part of their income in return for a tax credit. This brings the gross return to a whopping 6%!

 

[pascoevale]

The price increases are not going into the employees pockets nor the managers. Head office dictates to the store's. The shareholders are the ones benefiting.

Very true the head office of coles and woollies has excessive bean counter running around on fat pay packets remember the shopper pays for them. Then they want to work from home and have a Hissy fit if they cant, and there is a whole lot more even if you go to farmers market or farm gate the cost is the same so whats the point 9

 

[Lord Garton]

Let's face it Guys, we have only ourselves to blame. We, collectively, accepted the hype of the 1970's and allowed the supermarkets to starve out the small corner shops etc. Then, to add fuel to the fire, the few that had survived the battle fought back by having extended trading hours. What did the supermarkets do? They lobbied the government to get increased trading hours so that the convenience stores no longer had that lifeline. I'm not one for conspiracy theories but, in these times, the pattern can't be ignored.
Look how almost all neighbourhood hardware stores have disappeared and Bunnings has mega-stores everywhere. Good fish & chip shops are virtually non existent now but every suburb has a McDonald's or a Hungry Jacks churning out garbage and charging what they want because the competition is gone.
Not to mention the local newsagents who, because of progress, are now relegated to selling cigarettes and Lotto tickets. You want stationery, a calculator or art supplies check your local Officeworks.
The list is virtually endless and, as I said earlier, we have only ourselves to blame. The writing was on the wall but we chose to ignore it, all for the sake of convenience - end of rant

Ｔｈｅ　ｇｏｖｅｒｎｍｅｎｔ　ｗａｎｔｓ　ｔｏ　ｃｏｎｔｒｏｌ　ｅｖｅｒｙｔｈｉｎｇ　ｗｅ
ｄｏ，　ｆｒｏｍ　ｔｈｅ　ｍｏｍｅｎｔ　ｗｅ　ａｒｅ　ｂｏｒｎ　ｕｎｔｉｌ　ｔｈｅ　
ｍｏｍｅｎｔ　ｗｅ　ｄｅｐａｒｔ　ｔｈｉｓ　ｍｏｒｔａｌ　ｃｏｉｌ，　ａｎｄ　ｔｈｅｙ　
ｈａｖｅ　ｍａｄｅ　ｏｕｒ　ｌｉｖｅｓ　ｍｏｒｅ　ｄｉｆｆｉｃｕｌｔ　ａｓ　ａ　ｒｅｓｕｌｔ．　　

 

[IAN3005]

It’s apparent that supermarket prices are continuously rising.

However, according to the Reserve Bank of Australia (RBA), supermarkets are able to pull off cashing in on their customers because, quite frankly, customers have no other options.

Research done by economists Callan Windsor and Max Zang studied earnings calls—dating back to 2007—wherein market analysts and journalists ask big corporations about their latest results.

View attachment 29820

Supermarkets are able to increase their prices and get away with it as consumers depended on their products. Image source: aleksandarlittlewolf on Freepik.

The transcripts of these earnings calls said supermarkets were more likely to be able to bring up prices during a supply shock or crisis period but still get away with it since consumers depended on their products.

The research also highlighted how supermarkets, along with meat, fruit and vegetable suppliers, are less likely to see a decrease in demand for their products despite price increases due to bad weather, supply chain disruption, or a pandemic.

It’s worth noting that supermarket giants Coles and Woolworths were not explicitly mentioned in the research or accused of any wrongdoing. However, both supermarkets have a 65 per cent market share, with an estimated 27.9 for Coles and 37.1 for Woolworths based on data from Statista, and have seen their profits rise during the cost of living crisis. ALDI has 9.5 per cent of the market, ahead of IGA's 6.9 per cent.

The Woolworths Group, which includes discount store BIG W, last month announced a $1.6 billion profit in the year to June, up by 4.6 per cent. Their revenue rose 5.7 per cent, now at $64.29 billion.

A day earlier, Coles announced its net profit after tax for the year to June 25 surged by 4.8 per cent to $1.1 billion in the year to June. Their revenue is now up by 5.9 per cent at $40.5 billion.

Overall, the July inflation rate was 4.9 per cent down from 5.4 per cent in June and the lowest annual level since February 2022.

But despite this, consumers continue to feel the pinch in their pockets with bread, cereal, dairy, education, rent, health, and other costs continuously rising, based on data from the Australian Bureau of Statistics.

You can see a summary of the different costs below:

Supermarket inflation also increased by 6.7 per cent, which was well above the 1.7 per cent level Coles reported for the 2021-22 financial year and Australia’s broader consumer price index.

Despite the ease in supply chain pressures, the RBA research predicted that higher input costs (especially for imported components) may keep consumer prices high.

'Firms’ price-setting sentiment also appears more sensitive to rising input costs compared to falling costs, suggesting that prices could remain front-of-mind for company executives even as supply pressures ease,' the researchers said.

An increase in wages while unemployment is at low levels was also unlikely to cause price hikes.

'Discussions around final prices have become more sensitive to import costs but less sensitive to labour costs in the period since 2021,' the researchers added.

Furthermore, the Reserve Bank of Australia is expecting inflation to remain on top of its 2 to 3 per cent target until June 2025.

Key Takeaways

• A research paper by the Reserve Bank of Australia (RBA) has revealed that supermarkets are able to increase prices during a supply shock and face no significant decline in demand, as customers depend on their products.
• The paper analysed transcripts of earnings calls dating back to 2007, demonstrating that supermarkets, as well as meat, fruit and vegetable suppliers, maintain a consistent demand, regardless of price hikes due to circumstances like bad weather or disruptions such as COVID-19.
• Although not named in the research, Coles and Woolworths are highlighted due to their combined 65 per cent market share, and reported profit increases during the cost of living crisis.
• Despite an easing in supply chain pressures, the RBA paper predicts that higher input costs, particularly for imported components, could keep consumer prices high.

What are your thoughts on this matter, dear members? Do you have tips that could help other shoppers stretch their dollars further? Let us know in the comments below!

Could have fooled me on the veggies.....