Independent bakers like Andrew Juggins will be hit hard by Woolworths which has slashed the price of its bread to just 85 cents.THE Australian Competition and Consumer Commission has identified supermarket behaviour as one of its priority areas for 2014 but it seems powerless to stop the latest price wars outbreak.
Woolworths fired the latest shot in the battle this week, slashing the price of bread to 85 cents.
What on the surface looks like a bonanza for consumers, just as the earlier price blitz on milk did, the broader flow-on impact is not quite as palatable.
According to some independent bakers, there is significant potential for the decision to cut prices to make trading difficult for businesses which cannot afford to match those prices.
The belief is that it simply is not profitable to sell bread at 85 cents. While the big supermarkets can afford to take a short-term hit to win market share, smaller independents cannot.
The ACCC is effectively powerless to stop the price wars, as a spokesperson told The Courier this week: “Low prices are not of themselves evidence of anti-competitive behaviour”.
In reality, the only means of maintaining an equilibrium is by customers choosing to support local business.
Given that family economics often mean buying decisions are made purely based on cost, supporting independents is not the easiest proposition to sell.
What we do know is that there is greater awareness than ever before about market forces and how they can be manipulated and this at least is in favour of the entrepreneurial mums and dads who help drive our local economies.
Deluxe tent a fantastic addition to the CBD
The Deluxe Spiegeltent is up in central Ballarat and what a stunning impression it makes on the CBD landscape.
It’s a great addition to the city, if only for a short time, with its primary purpose to host events as part of the Ballarat Cabaret Festival. It is the first time the Deluxe Speigeltent has made an appearance in regional Victoria.
If nothing else it has people talking and that’s a great result for the festival and the committee behind it.
We encourage all Ballarat residents to take a look for themselves during the next few weeks.
This story Administrator ready to work first appeared on Nanjing Night Net.