April 2012 Bright Vic
Bright economy under the microscope following VCAT decision to OK another duopoly supermarket. They didn't take on board the economic evidence presented by independents and now the independents and the community are paying for the blind eye.
August 2012 Australia-wide
Master Grocers of Australia undertake reserach to show a "fair Go' is overdue and needed in the Australian supermarket sector and that the Government and ACCC should pay heed to the problems stemming from the pronounced duopoly. You can read the Executive Summary and/or the full report
Wal-Mart’s Economic Footprint
New York research which demolishes the myths of the benefits of the big chains focussing here on Wal Mart in the US. Recommended reading for all interested in the future of retailing in Australia, particularly the ACCC and Productivity Commission and their current positions as to competition and market dominance.
April 2011
The Challenge to Feed a Growing Nation by Accenture Australia for NARGA. This report examines the relationship between agricultural producers, the retail chains and anti-competitive behaviour. Nov 2010.
April 2011
Selected reading references for the key issues involving independent retailing: April 2011
Please note copyright rests with the authors and publishers and is available only for private study and research under the provisions of copyright.
Parliamentarians and councillors are urged to seek the full texts from their reference libraries.
December 2008
Selected reading references for the key issues involving independent retailing: Dec 2008
Please note copyright rests with the authors and publishers and is available only for private study and research under the provisions of copyright.
1. Assessing the competition between small food shops and supermarkets
By Cliff Guy
Jan 2008
The UK Competition Commission has reported that competition between the small local food shops have the ability to compete against supermarkets. An evaluation of the CC Report revealed that the retail trade statistical material and the status of small shops as healthy is questionable. The issue of whether planning authorities should discriminate against supermarkets in favour of stores is discussed.
2. The Price we pay
ABC TV
2008
Big and dangerous or cheap and friendly. Stephen Long investigates how the astonishing market dominance of Woolworths and Coles affects consumers, suppliers and the nation’s food bowl
3. Competition under Fire
By Jane Lindhe
BRW June 2009
This reports on creeping acquisition. It says that such purchases pose a threat to competition over time and comments on the TPA.
4. ACCC flags supermarket reforms
By Jane Lindhe
BRW June 2009
The ACCC review will recommend eliminating structural impediments to competition mentioning that large chains use town planning laws to prevent competitors in certain areas.
5. Retail covenants breach law
By Jane Lindhe
BRW August 2009
ACCC says the restrictive covenants of Woolworths and Coles are anti-competitive and illegal. Landlords are also liable. $10m fines for each offence potential.
6. Producing the Goods
By Walter Menzies
Green Places 2006
In the UK, municipal neglect and misguided planning are creating neatness of bland development. The NEF found that 42% of surveyed towns were “clone towns” where the mainstreets were now dominated by a monochrome strip of global and national chains.
7. Analysing the impact of WalMart supercentres on local food store sales
By Georgeanne Artz (University of Missouri) and Kenneth Stone (University of Iowa)
American Journal of Agricultural Economics 2006
Research shows that WalMart entry in non metro areas reduces grocery sales in existing stores by 17% in the first two years. Many local officials anticipate increased property and sales taxes from a new (WalMart) but fail to recognise other potentially offsetting effects including lower wages.
8. The Economic and Social Impact of Big Box Retailers: Discussion
By Thomas Hart (Prof: University of Nevada)
American Journal of Agricultural Economics 2006
Reviews three papers and indicates trade-offs between big box retail such as WalMart as to competition with existing sector stores, lower wages and services availability.
9. Buying Power in the UK groceries market
By Paul Dobson (Prof Loughborough) and Ratula Chakraborty (Loughborough)
Antitrust Bulletin Sept 2008
The apparently inexorable trend towards further retail consolidation in the UK is likely to keep the sector under the regulatory spotlight.
10. Fixing fairness in the food chain
Farmers Weekly 2008
The article praises the decision of the Competition Commission to strengthen and extend the grocery supply chain’s Code of Practice and mentions the Office of Fair Trading’s investigation into price fixing in the grocery sector. It describes the relationship between farmers and the supermarket chains.
11. Back in Business
By Amanda Burton
Australian Geographic 2008
Charts the comeback of small stores versus supermarkets in Australia by diversifying their offer.
12. Time to curb the power of the supermarkets
By Caroline Stock
Farmers Weekly 2009
The author reflects the need for the British Government to reduce the power of supermarkets over suppliers and the supply chain after the Competition Commission called for the establishment of a retailer ombudsman.
13. Know your enemy
By Jenny McTaggart
Progressive Grocer 2006
How to compete with WalMart etc which threatens the smaller grocer: impacts and strategies to fight back
14. Supermarket Sweep
The Economist 2008
Examines UK Office of fair Trading looking at price fixing of chain supermarkets and how this inspection reflects a newly aggressive attitude of European governments towards anti-trust laws.
15. Choice survey highlights shopper concern
Australian Consumers’ Association 2008
A survey of subscribers shopping patterns for submission to ACCC
16. A Tesco in every town
The Economist 2007
Small shops compete amongst themselves, big supermarkets have 900 sites land banked and try to lock out competition to maintain profits
17. The competition effects of supermarket services
By Alessandro Bonanno(Penn State University) and Rigoberto Lopez (University of Conneticut) August 2009
This study investigates the competition effects of supermarket services using fluid milk as a case study. Higher prices, more quantity sold and more less price sensitive customers is the result from data at 15 supermarket chains.
18. Retail innovation and shopping practices: consumers’ reactions to self service retailing
By Andrew Alexander and Simon Phillips (University of Surrey) Gareth Shaw (University of Exeter)
Environment and Planning 2007
Charting the rise of self service and understanding shopping behaviour.
19. The Sprawl of Food Deserts
By Nathaniel Mead
Environmental Health Perspectives 2008
Canadian perspective and study on suburbanisation of supermarkets and reduced food variety and availability in urban centres as well as decline of local resident numbers close to supermarkets. Advocates new planning laws and farmers’ markets.
20. The power of two: squaring off with Australia’s large supermarket chains
By David Round (Prof University of South Australia)
Australian Agricultural and Resource Economics Society 2006
A key resource for the current government and ACCC which postulates market conduct not structure should be the primary focus of regulatory and policy interest by government. Intervention as a general policy in supermarket retailing would not be socially efficient it says. Minister Emerson and ACCC leader Samuels have adopted this view.
21. The Australian grocery industry: a competition perspective
By Rhonda Smith (University of Melbourne)
Australian Agricultural and resource Economics Society 2006
Supports Round (see above) while discussing buyer-power concern and harm to other retailers, suppliers and consumers, can’t quite make the case that it occurs and how it could be dealt with. Important to understand the standpoint of the current and previous Federal governments. This assists in understanding their inaction. Based on out of date references.
22. The regulation of retailing: lessons for developing countries
By Allan Fels
Asia Pacific Business Review 2009
Examines the history of regulation of retailing in developed countries and considers the lessons for Asia Pacific nations. Once a high degree of concentration has been reached and with it considerable buyer and seller power by retail chains, significant policy problems have arisen. There comes a tipping point when retail chains reach a position of dominance with effects on competition.
23. Supermarkets and shopper dockets: the Australian experience: policy forum
By Joshua Gans (University of Melbourne) and Stephen King (ACCC)
Australian Economic Review 2004
Brand-specific bundling between groceries and petrol can be a legitimate competitive tool, but as the practice spreads such bundling may result in a considerable loss of consumer welfare and a long term erosion of competitive pressure in both industries.
24. Retail grocery prices in Victoria: the relevance of local market conditions
By Jill Walker and Tony Webber (Network Economics Consulting Group)
Australian Economic Review 2004
The research builds on Metcash supported work by Smart, Peroski and Ergas re creeping acquisition. Prices in supermarkets are effected by local market power and location specific market power should be considered in review of the grocery industry.
25. The impact of supermarkets on farm suppliers
By G.R. Griffiths (NSW Dept of Primary Industries)
Australian Economic Review 2004
Reviews the nexus of farmers and supermarkets and recommends further research to examine the links but acknowledges that problems of market power do exist in this market.
26. The supermarket: an institutional innovation
By Walter Oi (University of Rochester)
Australian Economic Review
Examines an overview of the history of supermarkets and touches on negative aspects of WalMart in driving out small stores, but net los of jobs and replacement of jobs with less well paid jobs.
27. Service trumps price
By Michael Bergdahl
Progressive Grocer 2008
Compares prices at supermarkets versus WalMart and extols the virtues of service to counter the effects of discounted prices.
28. Competition and Oligopoly: a case of UK grocery retailing
By Kevin Lawler (European School of Management)
2003
Economic modelling findings show that consumer characteristics define type of store choice and that an auction model of price competition with uncertainty is an appropriate way to model retail grocery competition.
29. Liquor retailing and the Woolworth/Coles juggernaut
By Evans Jones (University of Sydney)
Journal of Australian Political Economy 2005
Reviews unparalleled market dominance of the duopoly but no substantial government action. Both the NCC and the ACCC view the aggression of the two retailers as a boon to consumers. This view, it is argued, is very short-sighted. It is also profoundly negligent of the businesses who are victims of a structured process of exploitation. The authorities’ rhetoric persistently ignores the structural subordination of small businesses. That the authorities judge this essentially monopolistic drive as acceptable represents a distortion of the anti-exploitative ethic that has always underpinned the defence of the market economy itself.
30. Testing the effectiveness of the proposed UK competition test
By Rebecca Hughes (University of Leeds)
Service Industries Journal 2009
The new competition laws (planning based) are toothless and many agree that the Friends of the Earth position is accurate,” The commission’s report misses the opportunity to support local shops and choice – its competition test does not go far enough to stop the Tesco (and ASDA (WalMart) ) takeover and the commission has done nothing to recreate vibrant (local) shopping communities.”
31. Grocery retailers and regional monopolies
By Rachel Poole (University of Leeds)
2002
Explores the extent of future retail expansion after Competition Commissions findings and what-ifs expansion of smaller operators in regional areas, perhaps even by divestment of the big chains.
32. Consumer observations on channel choices: Competitive strategies in Finnish grocery retailing
By Katri Koistinen (National Consumer Research Centre)
Journal of Retailing and Consumer Services 2009
Finnish consumers use multi channel shopping opportunities and price is not the dominating criteria for selection. Consumers respond to loyalty programmes and have options for selection of which loyalty programme they choose.
33. The Australian Grocery Industry
By Rhonda Smith (University of Melbourne)
Australian Economic Review 2004
An overview of the grocery industry from a conservative point of view.
34. Hypermarkets and the small retailers in Malaysia
By Rosmimah Roslin (UTM)
Journal of Asia Pacific Business 2008
The introduction of hypermarkets such as Carrefor and Tesco are altering the retail sector. Some regulatory measures may need to be introduced.
35. The effect of WalMart on grocery prices in NewEngland
By Richard Volpe (University of California)
2006
Pricing effect in NewEngland by WalMart shows decrease by 6-7% for national brands, 3-7% for private labels with dry and dairy being most effected by price decreases by virtue of WalMart.
20 November 2008
PricewaterhouseCoopers June 2007 "The economic contribution of small to medium-sized grocery retailers to the Australian economy, with a particular focus on Western Australia"
OCTOBER 2007
UK Competition Commission Commentary from the UK Competition Commission on the Groceries Market provisional Findings. Highlighting areas of concerns and implications for consumers and small retailers.
JANUARY 2007
Groceries Market Investigation - Emerging Thinking
UK Competition Commission, a report on the demise of independent retail and growth of chains among other key issues.
SEPTEMBER 2005
Achieving Fairness in Trading Between Supermarkets and their Agrifood Supply Chains
for the UK Food Group Briefing by Anne Tallontire, NRI University of Greenwich, Medway and Bill Vorley International Institute of Environment and Development
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