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Australia: ACCC chairman warns Woolworths on food prices

By  |  March 8, 2015

The head of the competition watchdog has again warned of the dangers of an ongoing price war in the local grocery sector, hoping the latest discounting battle will hit the margins of the supermarket giants rather than those further down the supply chain, The Australian Financial Review reports.

Australian Competition and Consumer Commission chairman Rod Sims said the regulator remained vigilant on what was, until recently, a “very cosy duopoly” and noted that the two heavyweights – Coles and Woolworths – continued to have “very high margin businesses compared with overseas.”

The comments come after Woolworths detailed plans to cut $500 million in costs, with savings used to trim prices at the checkout. However, some are concerned the discounting strategy will lead to further pressure on suppliers.

 

Full Content: The Sydney Morning Herald

 

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