Summary:
A new Woolworths grocery store is set to open in Mareeba, a Tablelands town in Australia, putting the recently-renovated independent IGA store in a precarious position. Woolworths Fresh Food Market does not buy any goods locally, and this shift may negatively impact local farmers supplying produce to IGA. Member for Kennedy Bob Katter has long warned against the supermarket duopoly and its adverse effects on independent grocery shops, family corner stores, and farm produce prices.
What This Means for You:
- Local farmers may face challenges in selling their produce to IGA due to Woolworths’ entry into the market. Consider supporting local farmers and businesses in your shopping choices.
- Be aware of the impact of concentration of market power in grocery retail, as smaller businesses may be wiped out and consumers could end up paying higher prices.
- Reflect on the role of government legislation in maintaining fair competition and market share to protect both consumers and small businesses.
- Stay informed about the predatory business models of large chains like Woolworths, as the entry of such retailers can lead to the closure of independent grocers and a potential increase in food prices.
Original Post:
A new Woolworths grocery store will soon open in the Atherton Tablelands town of Mareeba, potentially threatening the future of the recently-renovated independent IGA store. Local farmers are expected to face difficulties, as Woolworths Fresh Food Market sources its produce from farms and markets in southern Queensland, NSW, or Victoria, rather than buying locally.
Member for Kennedy Bob Katter has consistently warned against the supermarket duopoly and their predatory practices, which have driven independent grocery shops and family corner stores out of business and manipulated farm produce and grocery prices. The new Woolworths store will be constructed on the Rankin’s sawmill site along the main street, directly opposite the Coles supermarket.
Katter urged shoppers to support local businesses and take into account the impact on local jobs and Tablelands farmers who are “screwed down on price” when signing supply contracts with Coles and Woolworths. BlackRock, the largest shareholder in Woolworths, controls over $12.5 trillion in assets under management, making it the world’s largest asset manager.
Woolworths and Coles’ predatory pricing strategies include using ‘mystery shoppers’ to monitor competitors’ specials and prices, forcing independents to lower their prices, and then reverting to their required level once the majority of shoppers have deserted the smaller stores. Developers Girgenti Group must submit final documentation, including a bank guarantee, to comply with the condition that the foundations must be poured before October 2026. Mareeba Shire Council is set to recommend freeholding of a 1100 sq metre block of land within the site.
Extra Information:
For more context, read about the impact of supermarket duopolies on local businesses and farmers in articles such as “Supermarket Duopolies: The Struggles of Local Shops and Producers” and “Exploring the Consolidation of Supermarket Chains.”
People Also Ask About:
- How can consumers support local farmers and businesses in the face of supermarket chain expansion?
- What role do government regulations play in ensuring fair competition in the grocery retail sector?
- What tactics do large chains like Woolworths use to dominate the grocery market?
- How can rural communities mitigate the negative effects of supermarket chain expansion?
Expert Opinion:
The Woolworths saga highlights the importance of monitoring market power and ensuring fair competition to preserve small businesses, local jobs, and reasonable prices for consumers. Keeping a close eye on political policies and lobbying efforts in this sector is crucial for maintaining a healthy balance between large corporations and small businesses.
Key Terms:
- Supermarket duopoly
- Local farmers
- Independent grocery stores
- Market power concentration
- Predatory pricing
- Assets under management (AUM)
- Blackrock investment firm
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