Regional areas will be hit hardest by the price rises, as more fuel is required to transport goods further distances from metropolitan distribution centres.
“The cost of fuel and fertiliser is flowing through the supply chain, and we’re going to see in metro areas probably a 2 or 3 per cent increase across the board,” market analyst and director of Episode 3, Matt Dalgleish, said.
"We’re seeing record prices for diesel, and that’s what most of Australia’s freight runs on.
“In regional areas it could get higher, maybe 10 per cent, depending on how remote the area is and how stretched the supply chain is.”
I’m not australian but i did work for a food wholesaler. Supermarkets operate on razor thin margins. Usually between 0.5 and 2% margin. Absorbing costs will cause them to go out of business.
Let me guess…American?
As a non-australian you might wanna google “Colesworth”
EBIT margins alone are roughly 5–6% but those two cunts are ranked amongst the most profitable globally.
Woolies does au and nz. Coles is an Australian-exclusive operation. And they’re still among the most profitable in the world.