Newsagents should check out Adele Ferguson’s excellent article in the Fairfax press yesterday (and online) about the ever expanding power of Coles and Woolworths.
While I am sure many newsagents and small business operators feel concerned, even helpless, about the even expanding grab they are making for sales in Australia, we have some politicians and regulators looking at the power of these too. We can support them by reminding them of the damage these massive businesses do in taking business from small businesses.
Check out my post from a few days ago on an ignored risk Coles and Woolworths pose to newsagents.
In the Good old USA whom we see as the ultimate bastion of free enterprise Woolies and Coles would have been busted up long ago for holding to much market power. Here I guess a few political donations by them to the right political parties protects them from any such action.
I also urge you to read Mark’s earlier Post and see the actions I am considering at the next Federal Election. If we want to see Main Street Retail survive, with a broad diversity and small business we have to do something.
Our Polies to date are not interested yet.
Any way I am off to collect the returns from Woolies Petrol which Nationwide makes me service as a sub agent against my better Judgement. If I make $3.00 in commission for the week from it after delivering 7 days and processing the returns I will be very lucky. However one stand out week I did make $10.50 in commission when they neglected to return their Footy Cards on time (none were sold).
LOL Peter. Last week our Bunnings entire account amounted to $7.70 for the week, we’re well and truly shafted by the corporates. Our politicians are in cloud la la land.
The interesting thing is that these shopping centres that are being developed also create their own mini monopolies. If you have a business in a shopping centre you cant move it because there is no where to go and so you are also able to be screwed by the developers(woolworths/Westfield) for exhorbitant rents. Again no competition. Those people that clamour for competition to ensure efficiency in the market move the competition to the lower end of the market not at the top. As the article says ultimately when the competition and suppliers have gone the prices will go up and the ability to move into the market by new suppliers is cost prohibitive.
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Woolies Petrol got built up last week by Nationwide News to 13 to 16 a day plus 1 Aus a day (2 Sat). My commission was only $3.70.a sell through rate of 15%. Excellent stuff by Nationwide and Woolies.