Tuesday, November 01, 2011

Supermarket wars to get tougher

THE new chief executive of Woolworths, Grant O’Brien is planning to double Woolies sale of home brand products, bringing it closer to supermarkets in Britain and the US, where the category dominates shelves and generates massive earnings.
The battle with Coles for market dominance will see many manufacturers and producers (including egg farmers who choose to supply the supermarkets) facing tighter margins as the two retail giants screw down prices.
And the Australian Egg Corporation is playing their game by trying to introduce standards which will help the supermarkets cut the margins of all their egg suppliers - which is likely to have a flow-on effect throughout the industry.
It is thought that Mr O’Brien, who has only been in the top job at Woolworths for a month, has targeted an increase in space allocated to home brand goods to eventually capture about 35 per cent of total sales - and more than 50% for staples such as eggs, milk and bread.
And the Egg Corp claims to represent the interests of all egg producers!!!!

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