Coles Pointing the Finger -

This article appeared in the Business Spectator. I find this rather odd coming from Coles as manufacturers are efficient. They have to be in today’s climate, what Coles and Woolworths don’t tell you is what pressures they put on their suppliers, with their various settlement discounts, shelf placement fees, ullage, promotions charges etc and in the end, the supplier who would in normal circumstances will get say $1 for their goods, but dealing with these monoliths, will end up getting at the best $0.75c for the product, then Coles & WW will add on their mark up on their original cost price of $1 of say 50% so they sell the product at $1.50 effectively making $0.75 or 50% PROFIT. Tell me is this not ripping off both ends of the selling cycle, the supplier and the consumer. Mr McLeod you are so wrong in your statement, try telling the public exactly how you purcahse and price goods in your store

Coles says it is not to blame for supplier struggles

Published 4:35 AM, 29 Mar 2012

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Wesfarmers Ltd-owned Coles managing director Ian McLeod says suppliers who have criticised Coles and Woolworths Ltd over the grocery price war and growth of in-house brands are only using “convenient excuses” to cover up their own failings, according to a report by The Australian.

British soap-maker Cussons recently said it would close its Victoria factory over competitive pressures from supermarkets' in-house brands, while Heinz recently decided to close its Victorian tomato soup factory, citing similar reasons.

Mr McLeod said supermarket chains are not to blame if suppliers are struggling.

“Suppliers who aren't driving efficiency or investing in their business will see a rising cost base; previously those costs would be passed on to the retailer, who would pass that on in the form of prices, so you'd get inflation and the customer would pay,” Mr McLeod said, according to