A once-steady rate of FMCG growth in Australia has continued to stall as a result of price-cuts, with the weakest growth in almost two years, reports smh.com.
Largely, this is due to the fact that Aldi has forced the country’s two most prominent grocers – Coles and Woolworths – to combat one another, as well as the German discounter, on price.
This has resulted in a deflation of food prices of 1.3 per cent in June 2015, though for the final quarter of 2014, the figure stood at about 2.5 per cent.
Commenting on the possiblity of an all-out price war, Morgan Stanley, through its spokesman Michael Simotas, said, "It's hard to read too much into it, but you're starting to see signs that supermarkets are going a bit harder on price.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
