FMCG Blog FMCG Views and News

Many commentators have labeled the December 08 $10.4B cash stimulus handout as useless, including Gerry Harvey who said

“In retrospect now you say to yourself: ‘was that a real good idea, that was 10.4 billion, that’s a lot of money’”

It definitely had an impact on retail sales, but if most of those items were imported, it may have just cleared the channel a bit and helped the Chinese economy.

Well we have a more comprehensive stimulus plan this time from the Government. Several cash handouts and some Tax benefits for business that should definitely give a boost to demand.

Have a look at The Age summary for more details.

Tim

Posted under Uncategorized

Woolworth’s has established a scheme where over 115,000 of their employees will be allowed to spend up to $1000 at any Woolworths store from their pre-tax income. The spending must take place before 9th January 2009.

Given that the employees are probably pretty loyal, it is questionable if this will boost sales by very much. It is a nice gesture at Christmas time however. I think that the money being dished out by Rudd over the next fortnight is going to give a bigger boost to sales, particularly in Big W.

Tim

Posted under News, Retailers

Another month’s results from the ACCC’s Grocery Choice web site and Woowlorths is now the cheapest. So what does this mean?  The front page of the web site tells us the news;

• Woolworths cheapest on total grocery basket in 59 of 61 regions (up from 21 last month)
• Nationally, the price difference between Coles, Woolworths and Independents has narrowed
• ALDI cheapest on basic staple products

By the way this is what they do;(from the web site)

“Price information is obtained from an independent monthly survey of approximately 500 products from 600 supermarket outlets across Australia. The results of each monthly survey will be made available on the GROCERY choice website on the first business day of the following month.” Read More…

Posted under News, Retailers