And ideas can't be regulated.
As part of the Commerce Commission's review into supermarkets they found some of them bought land and prevented competitors opening near them. That is a 'specific' and you can change those rules, and they did.
You can also change the rules around how long it takes to pay someone like a supplier, so if they decide 120 days is too long they can make it 90 days.
But the relationships, the so-called bullying, the idea that a huge player lauds it over a smaller player can not, and will not, be fixed, anymore than having a Grocery Commissioner will drop the price of lamb.
It's the same with petrol. We did a market study on the price of petrol. Is it down or is it priced the way it has always been priced, on the price of oil and transport?
They have talked a big game on building supplies, on supermarkets and now on banks. I note S&P, one of the world's biggest ratings agencies, said that study will make little or no difference to the way banks operate, and they are right.
If you want to make it slightly political, it is one of the many reasons the Government will lose office in a few weeks. A lot of what they talked about versus what they actually did, didn't translate. They're big on theory, not so much on delivery.
In these cases their fundamental understanding, or lack of, business nouse undid them and led to the inevitably disappointing results.
There is plenty of competition in supermarkets if you shop around. You don’t lack choice and never have.
If you live in a small town you have less choice than a city. If it rains the price of lettuces goes up, there are specials and end of aisle deals.
What the promise was made on was two-fold; are supermarkets big and seem rich? Yes. And do you pay too much for your groceries? Yes.
But that is emotion. They tapped into the emotion that you were getting ripped off, that you weren't getting a good deal and that they were robber barons.
Well, go check your price of lamb or your litre of petrol or your box of nails or your mortgage rate. Has anything changed because the Government said it would and did a study into it or rolled out a commissioner?
I won't hold my breath waiting for the answer.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
But the relationships, the so-called bullying, the idea that a huge player lauds it over a smaller player can not, and will not, be fixed, anymore than having a Grocery Commissioner will drop the price of lamb.
It's the same with petrol. We did a market study on the price of petrol. Is it down or is it priced the way it has always been priced, on the price of oil and transport?
They have talked a big game on building supplies, on supermarkets and now on banks. I note S&P, one of the world's biggest ratings agencies, said that study will make little or no difference to the way banks operate, and they are right.
If you want to make it slightly political, it is one of the many reasons the Government will lose office in a few weeks. A lot of what they talked about versus what they actually did, didn't translate. They're big on theory, not so much on delivery.
In these cases their fundamental understanding, or lack of, business nouse undid them and led to the inevitably disappointing results.
There is plenty of competition in supermarkets if you shop around. You don’t lack choice and never have.
If you live in a small town you have less choice than a city. If it rains the price of lettuces goes up, there are specials and end of aisle deals.
What the promise was made on was two-fold; are supermarkets big and seem rich? Yes. And do you pay too much for your groceries? Yes.
But that is emotion. They tapped into the emotion that you were getting ripped off, that you weren't getting a good deal and that they were robber barons.
Well, go check your price of lamb or your litre of petrol or your box of nails or your mortgage rate. Has anything changed because the Government said it would and did a study into it or rolled out a commissioner?
I won't hold my breath waiting for the answer.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
3 comments:
Mr Hoskings.
NZ Supermarkets. Since "time empirical"/ or as long as I can recall, the onset of supermarkets into NZ, has been "fraught with player dominance".
I recall, in my youth, that the "shop on the corner", who specialized in groceries, or the Stock Agents (my example is Williams & Kettle of Hawke's Bay) who had a grocery division, all did very well.
The onset of the Foodstuffs Brand, was the beginning of Supermarkets across NZ, and long with Woolworths NZ (as it was known then) became the dominate "players" in the provision of providing foodstuffs to the Public.
The ones, of yesteryear I mentioned "folded" as they could not compete with the range & purchase price of the products now being offered.
The Govt of the day had the opportunity, then, to enshrine Law that may have curtailed their expansion. BUT, sadly, there was "no other bidder, in the market place" that could establish a rival in "the grocery trade". The Warehouse, tried, but I am "informed that the Big 2 undercut that operation", the "word on the street was they had quiet words with potential suppliers".
Our current 2 players, if you notice, "play with prices of products", just to show that they are "working with being on side with the cost of living expense, when it comes to purchasing groceries".
The NZ Public are very much aware of what they have, in the way of current Supermarkets and know that there will be no change in the foreseeable future
and it would have been interesting, at the time, to have gauged Public reaction to the appointment of the Grocery Commissioner? Me thinks - derision!
Also keep in mind that it was Jacinda Ardern who started this, with "a pronouncement" that Her Govt would look at the Grocery Industry. What were they going to look at - then? I would ask if she ever stepped into a Supermarket?
In closing, please keep in mind that Woolworths Australia own the NZ version (once they complete the name change, back to what it originally was), but the question is, who Owns the Foodstuffs Operation?
ANON, of New Zealand.
Foodstuff NZ is a coooperative owned by anyone who owns a food business and wants to buy shares.
Countdown's promise to hold prices for 1year has already been blown out of the water. One of the price freezes was 4kg of white washed potatoes for $10. For a whole year starting around June 2023.
Well, from Wellington city to western suburbs they have suddenly jumped to $12 with nary a sign of the special/price-frozen deal.
Where is the Commissioner when you need them?
In a quirky aside, Pak'n Save Porirua had those potatoes for $1.99 /kg the other day.
MC
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