I never expected Woolies to admit they they (and their competitors) do not negotiate a fair market price with suppliers. This announcement tells us that this is what they have done, they hold all the power, that they have screwed down the price to the point where their remaining suppliers are barely surviving and the supplier is powerless.
Now they say they will do better. They are not going to renegotiate, they are going to graciously give a bit! The suppliers have no say in this all they can do is touch their foreheads to the lord of the manor and say thank you for small mercy.
After the banking royal commission we don’t need another lesson in the evils of market concentration to the point of monopoly but here we have it, actually the converse monopsony.
Do they feel the need for another quick fix of public approval? What are they afraid of? Perhaps the board is feeling guilty. Perhaps.