Alex Mironov’s Post

Just a synopsis of current proceedings. The Australian Competition and Consumer Commission (ACCC) is conducting a comprehensive inquiry into the nation’s supermarket and grocery sector, focusing on competition, pricing practices, and supply chain dynamics. This inquiry has revealed significant concerns about the dominance of Coles and Woolworths, which together control over 67% of the supermarket retail market. The inquiry's aim is to identify any practices that harm consumers or suppliers and recommend measures to address them. Key Findings and Developments: Market Concentration: The industry remains highly concentrated, with Coles, Woolworths, and ALDI dominating sales. This oligopoly is seen to reduce incentives for vigorous price competition, as market leaders often mirror each other’s pricing strategies. Supplier Challenges: Many small and regional suppliers reported difficulties in negotiating with large retailers. Issues include pressures to lower prices, unfavorable terms, and limited access to supermarket shelves. Impact of Loyalty Programs: The rise of member-only pricing and sophisticated loyalty schemes has raised concerns about transparency and fair access for non-members. These programs also utilize consumer data extensively, influencing market dynamics. Public Hearings and Feedback: Public hearings have involved major players like Coles, Woolworths, ALDI, and Metcash. These sessions aim to clarify their pricing strategies, supplier relationships, and competition dynamics. Feedback from stakeholders, including suppliers and consumers, has been collected through surveys and roundtables. Next Steps: The final report, due in February 2025, will outline the ACCC's findings and provide recommendations for enhancing competition and fairness in the sector. #competition#pricing#discounts#dulopoly#manufacturers#farmers#future

An interesting article from from British Retail Consortium on rising inflationary pressures in 2025 - a potential preconditioning tool for our supplier clients and a way to handle the objection of "deflation"? We think so! Retail prices dropped 1% last month, but the British Retail Consortium (BRC) has warned that rising inflationary pressures in 2025 will soon reverse this trend, with food and non-food prices set to increase. The latest BRC-NielsenIQ Shop Price Index found that retailers relied on heavy discounting to close out 2024, but warned that rising costs —driven by higher taxes and new packaging levies— are expected to push prices higher in 2025. The December report, which captures data from 1-7 December, shows non-food prices were in deflation at 2.4%, a slightly deeper drop than the previous month. This was largely due to the timing of Black Friday, which pushed significant discounting into this data period, making non-food price deflation appear more pronounced than the broader underlying trend. However, the BRC caution that these relatively stable figures could soon give way to sharper price hikes as retailers face a projected £7bn increase in costs due to higher wages, taxes, and other external factors. https://lnkd.in/d7PwCNiZ ✅ ✅ Transform your commercial outcomes with capability and consulting support from Total Negotiation Group. With a global footprint and a wealth of experience across category and channel, revenue growth management, customer planning, selling and negotiation, we are the trusted partner of the world’s largest FMCG manufacturers. Find out why our partners trust us by contacting one of our experts today at [email protected]✅ ✅

With the grocery retail space feverly competitive, I continue to monitor #Lidl German #discounter performance in the UK . Lidl’s sales were up 9.4% year on year in 12 weeks to 12 May, pushing its market share to a record-high 8.1%, up from 7.7% a year ago, according to new #Kantar data today. I have spoken about this many times in my workshops as a good example of taking up a challenge of entering #new_markets . How did they do it? Their levers of success were #1 understand shoppers barrier psyche , then create an #Effie award winning campaign that is smack on insights (link in comments), finally a commitment to spend on #media, not just any budget but securing excessive share of voice (esov) by 15% at the head start with a year on year #performance_marketing #measurement. This is a #strategy that has success written all over it . Naturally , there have been tweaks to pricing and merchandise to battle #inflation yet continues to be a solid lesson for other retailers globally. Link to the case study . Don't forget to subscribe and share. https://lnkd.in/df5VUvRU Reach out to me directly for consultation. #consulting #shopper_insights #grocery #retail

Check out our CEO, David Sables latest article in The Grocer, where he discusses the growing impact of international buying groups on UK grocery values. A must-read for industry insights! https://lnkd.in/ebH7i9FU

Today we’ve released our interim report for the supermarkets inquiry. We heard that many Australian consumers and grocery suppliers are concerned that some of Australia’s supermarket retailers have considerable market power and are engaging in practices which disadvantage both their customers and suppliers. The report analyses information gathered through stakeholder submissions, responses to our consumer survey and feedback provided by suppliers at roundtable discussions and outlines what we’ve heard so far at the halfway point of the year-long inquiry. “During the remaining five months of our inquiry we will scrutinise whether, and if so how, the supermarkets may be using market power and the economic implications this has for Australian consumers and suppliers.” – ACCC Deputy Chair Mick Keogh. Read more on our interim report here: https://lnkd.in/gBf2ZnTG

Aldi’s new value pricing strategy is capping prices for Coles and Woolworths and inadvertently keeping prices stable for shoppers. For example, a basket of 14 common items costs shoppers $51.51 when they buy at Aldi, compared to $68.58 at Woolworths and $69.33 at Coles. So all in all, Aldi is c.25% cheaper than Coles and Woolworths.  Aldi’s new change in strategy is based on value-based pricing principles: They are offering high-quality products at lower prices for bestsellers and/or items which they can procure at lower prices. The market impact of this strategy basically forces Coles and Woolworths to stabilise their prices. The federal government is also curious about the wide market price bandwidth between supermarket retailers. So much so that they have already committed $1.1 million to tracking supermarket retailer prices over the next three years. On top of this, the government is also calling for a mandatory code of conduct between supermarkets and suppliers, aiming for more transparent and fair pricing practices. Aldi supports the report’s findings, while Coles questions the survey’s methods, offering its own basket price of $59.35. Woolworths highlights its wide range of products and competitive pricing. Senator Nick McKim calls for more competition, criticising the small price differences between Coles and Woolworths. #pricingnews #taylorwellspricing #supermarketpricing Blogs: https://lnkd.in/gcw9tsQG Source: https://lnkd.in/gXNvYByR

🛒 📈 Rising Food Prices Push UK Shoppers to Budget Supermarkets 📈 🛒 
 With food price inflation soaring in the UK, consumers are increasingly turning to budget-friendly retailers. Recent data from Kantar shows that Lidl and Aldi are gaining market share, challenging giants like Asda and Tesco. Only last year Aldi sales increased by 24% and sales at Lidl by 22% 🚀

 Here's why:
 💰 Aggressive Pricing: Lidl and Aldi offer competitive prices without compromising on quality, thanks to their streamlined operations and lower overhead costs. 🏷️ Private Labels: Their focus on private label products allows for high-quality alternatives at reduced prices. 🚢 Efficient Supply Chains: Strong supplier relationships and minimized intermediaries help keep costs down. 📍Strategic Locations: Expansion into urban and suburban areas makes these stores more accessible to a broader demographic.
 Implications for FMCG: To stay competitive, established retailers must: 📊 Optimize Pricing: Use data analytics to tailor prices regionally. ✅ Boost Private Labels: Invest in private label products to offer affordable options. ✅ Enhance Supply Chains: Streamline operations to reduce costs. ✅ Innovate for Customers: Personalize promotions and loyalty programs.
 At DoubleData, we specialize in providing insights that help businesses adapt to market changes. Discover how our data solutions can empower your strategy at https://doubledata.com/ 🤝
 #MarketTrends #FoodPriceInflation #Retail #Lidl #Aldi #DoubleData

The FTC investigation into grocery store supply chains illuminates the challenges arising from market dominance by a handful of organizations. This article emphasizes the complexities surrounding pricing, policies, and leverage affecting suppliers within tightly controlled distribution networks. Addressing such issues is crucial for fostering fair competition and ensuring equitable practices. https://lnkd.in/gV48xzgN

Aldi’s new value pricing strategy is capping prices for Coles and Woolworths and inadvertently keeping prices stable for shoppers. For example, a basket of 14 common items costs shoppers $51.51 when they buy at Aldi, compared to $68.58 at Woolworths and $69.33 at Coles. So all in all, Aldi is c.25% cheaper than Coles and Woolworths.  Aldi’s new change in strategy is based on value-based pricing principles: They are offering high-quality products at lower prices for bestsellers and/or items which they can procure at lower prices. The market impact of this strategy basically forces Coles and Woolworths to stabilise their prices. The federal government is also curious about the wide market price bandwidth between supermarket retailers. So much so that they have already committed $1.1 million to tracking supermarket retailer prices over the next three years. On top of this, the government is also calling for a mandatory code of conduct between supermarkets and suppliers, aiming for more transparent and fair pricing practices. Aldi supports the report’s findings, while Coles questions the survey’s methods, offering its own basket price of $59.35. Woolworths highlights its wide range of products and competitive pricing. Senator Nick McKim calls for more competition, criticising the small price differences between Coles and Woolworths.

Exciting Retail Sales Growth in July! 🚀 I'm thrilled to share some positive news from the latest BRC-KPMG retail sales monitor: UK retail sales have seen a noticeable increase in July, driven particularly by a surge in food purchases. It's a testament to growing shopper confidence and economic stability. This data shows a 0.5% year-on-year increase in total retail sales for July, which, while modest, is a positive indicator amidst broader market challenges. The food sector has been a standout, with sales up by 2.6% over the three months to July compared to the previous year. This marks the third consecutive month of year-on-year volume growth for the grocery market. What's more, the final two weeks of July were particularly robust, boosted by a mini heatwave and the excitement from the Euros and Olympic successes. This increasing consumer confidence is great news for the logistics and commercial sectors that I recruit within. I can see firsthand how this growth impacts the industry. Siamo Group, with over 30 years of experience, is well-equipped to help businesses navigate these dynamic times. Whether it's managing flexible labour or providing permanent workers, our focus remains on delivering exceptional service and tailored workforce solutions. Interested in exploring how our expertise can benefit your business? Reach out to me via email at [email protected] or call 01234 413413 📞. #RetailGrowth #FoodSales #UKEconomy