ACCC investigates Woolworths over commercial threat allegations to suppliers
The competition watchdog is investigating claims that Woolworths has threatened to withdraw products from shelves if suppliers don’t fork out millions of dollars to fund marketing and promotional campaigns.
The Australian Competition and Consumer Commission (ACCC) confirmed it has received complaints and is exploring the issue, just days after Coles agreed to settle a case with the ACCC over claims of “unconscionable conduct”.
Fairfax Media reported today that Woolworths is asking suppliers to contribute $50m under a program called “Project Close the Gap”, some of which will fund the supermarket’s marketing, including its Cheap Cheap campaign.
Profit gap?
Close the gap?
Similar to down down and cheap cheap – amazing to think these 2 are supposed to be competitors when they use similar language.
cheap cheap until you need to call the lawyers…not to mention the damage to the brand overall.
Mainstream aussies love cheap prices but not at the price of ripping off farmers. The executives at woolies & coles have a real short term strategy which can’t be sustained over the long period.
They need to looking at quality produce, more variety and better customer service if they are to be seriously taken.
The introduction of self service check out widely seen as lowering staff overheads which isn’t helping either.
Our food is already ten times overpriced thanks to these two monopolies. The farmers get squeezed and Woolies make the margin.
Go shopping anywhere else in the world and tell me there’s anything, including water or bread that’s more expensive than here.