WOOLWORTHS’ decision to slash its home brand white loaf price to 85 cents could “wipe out” local businesses, a Ballarat baker says.
Skipton Street Bakery Cafe owner Andrew Juggins said the latest price squeeze by the supermarket giant was a ploy to remove competition.
“We can’t make it for that cheap,” he said.
“I’m worried about our kids. Where are they going to work?
“We support 20 other businesses around here ... it’s the ripple effect it has.”
Australian Retailers Association executive director Russell Zimmerman said he didn’t believe supermarkets could sell bread for 85c and make a profit.
He said Coles and Woolworths could drive down bread prices, making local businesses broke, and then increase the price.
“That would be a huge problem,” Mr Zimmerman said. “Supermarkets are in fruit and vegetables, meat and bread.
“They want to get into optometry, pharmacy, they want to get into everything.”
On Monday, a draft report into Australia’s competition policy, the first in more than 20 years, was released.
But despite this, Mr Zimmerman said he saw no immediate solution.
“I don’t know at this stage if you can do anything about it,” he said.
A spokesperson for the Australian Competition and Consumer Commission said businesses were free to set their prices and discount their goods and services as they saw fit.
“Low prices are not of themselves evidence of anti-competitive behaviour,” the spokesperson said.
“Competition and consumer issues in highly concentrated markets, particularly supermarkets, are a priority area of interest under the ACCC’s Compliance and Enforcement Policy for 2014.”
Mr Juggins said it was up to the consumer to vote with their feet, but admitted the lure of cheap bread was enticing for some families.
Coles, Woolworths and Ryan’s IGA Ballarat were contacted by The Courier but declined to respond.
