CHOICE membership

Kaufland Coming To Australia


#1

An article about Kaufland preparing to launch in Australia.

The other supermarkets will want this like Custer wanted more Indians.


#2

I’d never heard of them before. The certainly have grown fast:
https://www.kaufland.com.au/
and they’re moving fast:


Five stores will pick the eyes out of the market. If it goes no further, I wonder whether the impact will be substantial.


#3

How will they compare to Lidl which was also reputed to be coming here to shake up the grocery market but has not made an appearance yet to my knowledge.
Aldi seems to be making great headway but only offer an incomplete shop with a visit to the regular supermarket a necessity for most people and only seem to generate bulk traffic for their regular Wed and Sat sales of mostly grocery unrelated items.


#4

It may all work out fine for Woolies and Coles. While they might loose some turnover, what odds the items you did not get at Aldi are rarely discounted at your second shop! So you top up your shop at Woolies or Coles and pay a premium price on a bigger portion of it. Great for their profitt margin too?


#5

Lidl and Kaufland are both in the Schwarz Gruppe.


#6

An update on Kaufland coming to Australia.


#7

Big retailers are all devout free marketeers any time governments mention any kind of regulation or limits that might apply to them.

“Cut down on government red tape”
“Jobs will be lost”
“Let the market decide”
“Competition is good for the consumer”

But then there might be mention of a change to the market status quo that could upset their cosy oligopoly. Suddenly apostasy strikes and the free market is a failure - they need protection.

“Overseas interests will drive us to the wall”
“Jobs will be lost”
“It will be bad for the consumer in the long run”
“The end of the world is nigh”

You have to laugh. What is even funnier is when responsible people who really ought to know better listen to this self-seeking drivel. But something must be done or jobs will be lost!


#8

There is one general caution with foreign owned and based companies operating in Australia.

Tax minimisation and profit shifting is very topical.

The issue of tax equity or fairness may be a much greater concern to hold than any competition effects on competitions?

https://thenewdaily.com.au/money/finance-news/2019/03/18/top-10-tax-energy-australia/


#9

We have met the enemy and he is us - Pogo 1970

The reality is our hand wringing and insight into macro economics and high level foreign versus local businesses and investments is our own doing through the governments we elect and our buying patterns.

Australia has a long and inglorious history whereby our own businesses (‘Australian owned’) as well as multinationals seeing us as cash cows introduced, maintained, and many continue to nurture it as the ‘Australia Tax’. There are finally a few cracks caused by the internet exposing most of us to internationally available products and pricing, but.

Government then helps by selling everything it can find of value that is not nailed to the ground, and some things that are, to the highest bidder, usually foreign controlled if not foreign owned and managed. Sometimes there is a local stakeholder or local seller whose sole motivation is ‘how many dollars does this mean for me’.

I am sure none of the above individuals or business have ever done that before, and it is all recent. Government allowed the problem to happen so they could pretend to fix it and get some donations that beget votes. Not sure if this is /sarcasm font or simple history. :frowning:


#10

I can accept foreign competition coming here. Assuming as consumers we pay the real international market price and not (Amazon comes to mind) a price excessively marked up to meet the status quo?

It would seem appropriate to have the broadest understanding of the potential impacts of Kaufland establishing in Australia. Some likely good for consumers, others perhaps not.

Is another competitor (with significant finance ability) entering the market place likely to create sufficient pressure to weaken one of the majors, eg Coles? And follow thru with a future takeover?

As I understand it the value in the Australian market is not it’s size or growth potential. It is the flattering gross margins possible to a well organised and resourced retailer? And perhaps also to the general acceptance of the majority of Australian Consumers to the status quo. Choice members excluded of course!