Supermarket concentration means better service and prices

March 7, 2014 by Niki Widdowson
Supermarket concentration means better service and prices
Dr Gary Mortimer.

If you have noticed supermarkets are starting to flock together in your suburb, it will mean lower prices and a bigger choice for you, says QUT retail expert Dr Gary Mortimer.

"Supermarket shoppers are the winners because the intense price competition drives prices across the board down," Dr Mortimer said.

"On top of that, the competition will mean supermarkets will look for points of difference. Low price strategies are easy to replicate so they will look to provide superior service.

"Expect faster, more efficient and friendlier service, while being escorted to the product you are seeking and your online groceries delivered to your kitchen bench top."

"Supermarkets are concentrating in certain areas such as Brisbane's Ashgrove where Woolworths, Coles and Aldi are all within walking distance of each other because they don't want to lose market share or a foothold in a suburb - a win for shoppers."

Dr Mortimer said it also meant greater convenience for fast-paced lives.

"With supermarkets popping up everywhere - Coles has just announced 70 new supermarkets over the next three years - it's much easier to stop in on the way home from school or work.

"This is already been reflected in the fact we now make on average 2.5 visits to a per week."

Explore further: Sweet news for specialty stores: You don't need to lower prices to compete, study shows

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