As Australia gears up for the inaugural parliamentary inquiry into supermarket pricing, allegations have surfaced regarding the pricing practices of major supermarkets, specifically targeting the granny smith apple variety. According to Fruit Growers Victoria, a notable disparity exists in the markup of granny smith apples, with rates exceeding 100%, a stark contrast to other apple varieties. This practice has been attributed to the lower sales volume of granny smith apples, prompting supermarkets to maintain higher profit margins despite reduced turnover. Supermarkets, however, stand by their pricing strategies, emphasizing the multitude of factors influencing retail prices, including logistical, labor, and packaging costs. Coles, in particular, has expressed its commitment to fostering strong farmer relationships, underscoring the complexity of retail pricing mechanisms.

Source: The Guardian March 07, 2024 13:23 UTC