Home' Convenience and Impulse Retailing : October November 2011 Contents 26 w w w.c-store.com.au | C&I | October/November 2011
Coles cleared of milk
Supermarket giant Coles has been
cleared of predatory pricing by
selling its house brand milk at a
The Australian Competition and
Consumer Commission (ACCC)
has found there is no evidence
that Coles acted in breach of
While there was evidence that Coles'
purpose in reducing the price of its
house brand milk was to increase
its market share, the move was
consistent with what the
commission would expect from
a competitive market.
"The major impact of the reduction
in milk prices since January seems
to have been a reduction in the
supermarkets' profit margins on
house brand milk," ACCC chairman
Graeme Samuel said.
The Queensland Dairyfarmers
Organisation called the ACCC's
finding a "premature conclusion".
Arguing that the ACCC had not
provided any evidence to back up
its findings and that some of the
biggest impacts will be felt by dairy
farmers when they negotiate new
contracts for the coming year.
The Senate committee tasked with
investigating the milk price war is
due to produce its final report by
1 October 2011.
During August 7-Eleven announced
free deals for customers via a freshly
launched Facebook application.
Facebook's Check In Deals o ers
exclusive deals for shoppers.
During the initial one week trial
customers could check-in at any
7-Eleven store on their smart
phone and claim a 450ml bottle
of Coke, Coke Zero or Diet Coke
for only $1.
Westfield also announced it
would take part in a trial of the app
with shoppers alerted to special
in-store discounts when they
checkin to Facebook.
7-Eleven's head of marketing, Julie
Laycock, said that Geo-Marketing
was the perfect way to engage with
customers on-the-go, as the mobile
phone is typically the only device
people have at point of sale.
"Facebook Check in Deals will be a
game changer in the Australian retail
space. While there are many websites
o ering coupons and deals,
Facebook Check in Deals highlights
deals available where smart phone
customers shop and play," she said.
"Through smart phones and the
Facebook Check in Deals application,
7-Eleven can now o er customers
a deal that literally sits in their
"With over 92,000 Facebook fans
and500 7-Eleven stores in Australia,
the new Facebook Check in Deals
platform will enable us to bridge the
gap between online engagement
and real world experience."
Source: Inside Retail 15/8/11
On 25 August, the Federal Court
dismissed an application by the
ACCC which sought to prevent
Metcash proceeding with the
acquisition of the Franklins chain of
supermarkets from Pick n Pay
Retailers (Pty) Ltd.
Metcash is now free to acquire
Franklins which comprises 80
corporate stores plus supply to 10
franchised stores all of which are
located in New South Wales.
Metcash is Australia's national
independent marketing and
distribution company specialising in
grocery, fresh produce, hardware,
liquor and other fast moving
Thankyou Water: now
7-Eleven Australia has announced
that Thankyou Water will be rolled
out across its store network with
stock on sale from early August.
7-Eleven's Head of Marketing, Julie
Laycock, says the 7-Eleven team is
very excited to be able to o er the
social enterprise product to its
"Our team, like our customers, is
interested in Thankyou Water and
its potential to create positive change
through access to safe water in
developing African and South East
Asian nations. We make decisions
about the products we range based
on the needs of our customers.
Thanks to so many people letting us
know they wanted to buy Thankyou
Water, we knew the product would
fulfill a need for our customers,"
"Because of our network size, we had
to be sure that the Thankyou Water
team had everything in place in
terms of supply and distribution
before we could stock the product
in our stores. We are thrilled their
team has been able give us
everything we needed to get stock
into stores so quickly."
"7-Eleven is pleased that we can
provide a great product for our
customers, assist in creating positive
change and support a social
enterprise company led by fantastic
young businesspeople," she said.
Thankyou Water founder, Dan Flynn,
22, is excited about the
"Being stocked by 7-Eleven means
that we can give more people the
chance to make a change by simply
drinking a bottle of water," Dan said.
"The purchase of one bottle of
Thankyou Water provides safe
drinking water for one person for at
least one month. Since people will be
able to get Thankyou Water at any
7-Eleven store, it will be easy for
everyone to make a di erence for
someone in the developing world,"
"The support for Thankyou Water,
especially on social media, has been
fantastic so we are looking for ward
to turning that support into sales so
we can fund more water projects,"
Cautious response to
In July Woolworths announced a
year-long trial of price fixing in their
vegetable and fruit lines.
The national peak industry body for
Australia's 9000 vegetable and
potato growers, AUSVEG, was
cautious about the possible impact
"What Woolworths has implemented
is an artificial market mechanism...it
causes AUSVEG some concern," said
AUSVEG Public A airs Manager
"While this system could be good for
growers supplying for Woolworths
when prices are competitive, we're
yet to see the details on what
happens when competing retailers
drop the price of their products
below what Woolworths is charging,"
Woolworths announced this week
that it would fix the prices of five
items in their national chain to give
consumers "consistent value".
The prices range from $1.88 per kilo
to $4.98 per kilo for truss tomatoes,
brown onions, Golden Delight
brushed potatoes and apples (Granny
Smith in WA and Red Delicious
elsewhere), as well as $1.45 for a bag
of prepack carrots.
The move was met with mixed
consumer reactions with some
commenting via internet forums on
an apparent lack of stock: "Woolies
at Revesby, Bankstown & Riverwood
have no truss tomatoes in stock since
they announced the price reduction.
Before that they had plenty & hardly
any of the cheaper gourmet
tomatoes. My local IGA & small
fruit shop have plenty in stock
at $9.99 kg".
Fuel leaking onto cars and clothing
could be a thing of the past thanks
to a Maryborough company that has
been awarded multi-million dollar
contracts with two major fuel
Peter Bensley from Pacific Gauges
has been awarded contracts to
supply fuel nozzles to Caltex and
United Fuels and expects other
majors to sign before year end.
"It has taken me 18 months of
testing to get to this point," he said.
The five-year-old business has been
importing American-made fuel
nozzles for the past three years
compared to the European models
currently used by many fuel stations.
Mr Bensley said Pacific Gauges was
awarded the contracts because fuel
companies now wanted to stop fuel
- especially diesel - from leaking on
to customers' cars and clothing.
Their nozzles are designed to stop
the build up of fuel leaking into the
spout and then onto ser vice station
"There is a change of attitude in the
fuel market, he said.
"It is no longer acceptable for service
station customers to leave a ser vice
station smelling of gas".
Fuel nozzles currently installed in
Caltex and United Fuels will be
replaced with nozzles imported by
Pacific Gauges through their normal
Source: Fraser Coast Chronicle,
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