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All valid points Knobby.

Also, they are not listed on any exchange. They are quite an enormous privately owned family company.

That's competition!
 
Without flooding the thread Terry Wallace Western Bulldogs style, I thought I'd
add this tune for all the those potential faint-hearted Wesfarmers or Woolies holders

 
GumbyLearner said:
Big call stocks!

I believe they will give a good thrashing to the duopoly majors within the next five years. That's right thrashing!
Click to expand...

Short WES and WOW.

The thing i hate about Coles is that it's phasing out a lot of well known brands. I love chocolate bavairian, the only one that Coles has is their no name one. Also noticed they're trying to copy a lot of Arnotts biscuits (yep, i have a sweet tooth). I don't mind no name t/paper, glad wrap etc, but not me food!
 
dalek said:
The critics were wrong about the Bunnings model "not enough population to support big box hardware, etc. etc." and they will be proven wrong in this case.
Click to expand...
The "big box" hardware model has dominated the market for over two decades now so that one's pretty well established. Any DIY'er under about 35 wouldn't really even consider going anywhere else since the "big box" model has always been there as far as they're concerned.

And I'd argue that the same model is basically what happens with food and groceries anyway, Coles and Woolies dominate the market and apart from inner city areas where space is limited, they no longer operate the much smaller supermarkets they once did - it's all "big" now.

A lot comes down to convenience however. If Costco opens 30 stores in Melbourne then it will be a serious threat to Coles / Woolies. But if they only open 1 store then it may well be profitable for Costco, but Coles / Woolies will continue to dominate the market and retain pricing power.
 
Big box hardware centres was introduced into Australia by Bunnings in 1994 when the first store opened in Vic. It was a totally new concept in hardware and the popular view by most in that industry was that while this business model worked with a USA population it would not hold up in Aus.
However, the concept actually grew the market and effectively changed the way people buy hardware and view home improvement products.

I suggest that Costco will also change perception of product value and buying habits. It is a perfect example of the destination shopping concept.
Customers will trade off convenience and other shopping comforts such as brand preferences for a better value product offer. They have no need to have a shop on every corner. Their customer catchment is probably 50km radius or more.
Aldi fits more into the convenience store model but actually combines many aspects of the Costco business except the need to buy bulk, in this way they do not go directly head to head with the existing supermarket duopoly or Costco. That may change when they have 400+ stores in the next couple of years.
The more these types of stores change our shopping expectations and understanding of value the bigger the problem becomes for WOW & WES who both operate comparatively expensive stores.
 
Competition at it's finest. Peter Schiff would love the free market
spirit behind this.

Walmart Rips Off Girl Scout Cookies

http://consumerist.com/5331449/walmart-rips-off-girl-scout-cookies

Walmart is selling cheap knockoffs of Girl Scout signature Thin Mint and Tagalongs cookies, says a former Cookie Mom and blogger CV Harquail. She writes, "It's not discriminating against women, strong-arming suppliers, polluting neighborhoods or racing to the bottom of the China Price. No, this time, it's closer to home, and in my case, really close to home. This time ... Walmart is knocking off the Girl Scouts."

"Every cookie fan in the US knows that the Girl Scouts in the USA make all of the money to run their organization from their annual cookie sales," she continues. And, "Thin Mints, the most popular flavor, account for 25% of the Girl Scouts' sales."
 
Same here. The Aldi store here is simply awful. The floor is always filthy, there is no good quality fresh produce (it's all pre-packaged and second rate unless you want potatoes, potatoes and potatoes), the staff are minimal, with the check out queues usually consisting of around 20 people, no express checkouts.

They seem to cater to a particular demographic.

I like WOW and increasingly Coles for bright, clean stores, wide variety of good fresh fruit, vegetables and seafood and on the whole courteous service.

Heavens, Aldi don't even have a phone number you can ring to make an enquiry about anything. Hate the place.

Knobby, can you possibly be talking about an Australian Aldi store?????
What you describe is the total opposite of the one here.
 
If you believe the layout of Aldi stores are a little down market,
then you sure wont like Costco!
The Costco stores I saw in US are like a big warehouse, perhaps
something similar to a Bunnings warehouse filled with groceries.
Their main attraction is the much lower prices and variety of goods.

Costco will never replace WOW/WES, but they will certainly
give them some healthy competition.
Can't be a bad thing.
 
AFR had a an article on Costco this week. It appears Brumby (spit – yep I’m a TAH shareholder ;-) ) has been courting them for 5 years so that’s why Melbourne has the first store. As per usual drizzle city does the leg work and Sydney and Brisbane benefit in the not too distant future ;-)

They’re number 7 or was that 8? in the world – so no inroads into the conglomerate WalMart. The CEO who came out for the event reckons they can put a dent not only into our supermarket chains but K-Mart and co. He’s of the opinion where else can you buy a big screen plasma for $3K? Ummm howzabout investor wet dream JB Hi-Fi? Or diesel jeans for $150? Again, here in Sydney I’m sure I could find a pair at the Jeans warehouse, or Homebush for that much. If I can find Ben Sherman apparel for a pittance of what they’re flogging them for at Myer/DJ’s to make one feel they’re a skin/rudeboy in some 2 tone ska timewarp, as if one can’t find name brands anywhere bar Costco??? And more importantly, not having to pay membership.

If as you say ajjack they’re worse than Aldi stores – and personally I thought you couldn’t get any worse – then if anything I reckon it will be hype on par with what Aldi got when they opened. At the end of the day, most punters went back to what they know. Nor can I see paid up membership being a big hit – Amway anyone???

I recall seeing something that resembles Costco on reality programs where product and produce sits on pallets in warehouse style supermarkets and fat yanks with oversized trolleys buy up 10 pound balls of cheddar cheese. If that’s Costco, no thanks ;-)

Re: Aldi I never thought you could get that much grease and oil staining the concrete of their carparks… more than one see’s on the workshop floor of your local wreckers and mechanics.

Re: WOW, appears they’re more interested in organic and boutique foods than bulk produce. They’ve recently bought out organic foodstores Macro and plan to merge it with their Thomas Dux (2 in inner-city Sydney) stores that sell niche groceries.
 
It would be really cool in light of the HILMER REPORT of 10 years ago, what will be the real impact of this opening of competiton!

Food for thought?

Small towns open their arms to more UNemployment and less competition!

Now that's a headline I'm sure to not read. WHYYYYYYYYYYYYYYY???
 

Costco are amazing!

While living in ASIA, I could buy prime grade Aussie steak, Pasta, Tim Tams, Canned Tomatoes, Fruit, Dairy Products, Potato Chips, Cheese etc... for much less than Australian prices!

Grow Up Coles and Woolies! And get with the real world!

YOU RIP-OFF MERCHANTS!
 
clearly a number of you have an issue with shopping where keeping costs down for the benefit of the shopper is more important than putting on a show and bedazzling folk with bright lights & perfect smiles. i see a lot of this in the wannabe folk of inner melbourne - i see it as fear of shopping in certain places & being seen there would affect their social standing.

sure some of these discount stores (food, variety, etc) are at times invaded by the 'lower forms of like' much to your disgust, but at the end of the day if someone is making savings on some items to allow a better lifestyle overall then thats great.

2 aldi's in inner melb i occasionally visit arent the rat holes some of you make out aldi to be - they are simple stores offering 'most' of lifes day to day needs. many of the brand names they sell are not the known names, but further investigation finds many are produced by the same manufacturers - heinz, nabisco, etc. read the packaging and discover for yourself. i personally treat aldi as i will costco - stock up on non perishables when the price is right, and fill the gaps with a weekly visit to that local safeway (who i might add seem to already be responding to costco's presence - you seen the price lately of loo paper in inner melb lol)

seeing my purchases laid out on pallets and not in brightly displayed & pretty shelving to allow significant savings in totally fine by me.
 
dalek said:
Big box hardware centres was introduced into Australia by Bunnings in 1994 when the first store opened in Vic.
Click to expand...
K&D Warehouse, which opened in Hobart in 1986, is exactly the same concept as Bunnings apart from the name.

So Bunnings may have introduced the concept to Victoria in 1994 but it was already a success in another Australian state years earlier which would have given Bunnings plenty of opportunity to assess the idea. In that context they weren't really taking such a huge risk.
 
Did anybody see what is in Costco shop in Melbourne and what are the prices?

They have Internet site, but no specific info on items they carry and prices except for Membership.
 
The idea that Costco can't succeed in a country of 20 million is pure rubbish. Costco is very successful in Canada, which is 33 million (about 10% of the US population). The success of a Costco store has nothing to do with the size of the country, and everything to do with the size of the city. There will only be one or perhaps two in a large capital city. They will not open one in a small city, probably a half million people or so will be the smallest. Because of that model, they will never replace the conventional supermarket.

Costco will be very successful. Much like Wal-Mart, er... Big W is, and like Home Depot... I mean, Bunnings is. Price and convenience sell.

The bulk buying element is often overstated. Most quantities tend to be about twice that of "normal"... some things more, some things less, but in general I'd guess that it works out to be about twice. A lot of items (electronics, clothing, eyeglasses, etc) are the same quantities as anywhere else. They have their own brand like Coles or Woolies, but most goods are name-brand. Most goods are very good quality, and priced well. Often, you will be able to find a better price elsewhere on an item if you really put the effort in, but when you go to Costco, you don't have to shop around to know that you aren't getting ripped off. The convenience factor is that when you're buying 20 items and know you are getting good prices, it saves you a lot of shopping around.

Disclosure: I've been shopping at Costco for a decade, and it truly is one of the best stores out there. Good quality items at good prices. As a consumer, that's what I want. I can't wait for it to open in Brisbane.
 
Think most of the stores get gobbled up by the bigger ones.. Costco will act like a vacuum cleaner and suck the life blood out of the area and employ juniors until the are too old. Also the chances of improving you skill would be low.
but the Feds look at it as a good thing
 

That's a fair point Glen48. The Wal-Mart story of the US is far from a perfect one especially when you look at it's impact on small town USA and the shutdown of many small businesses. On the other hand, if you look at it from an Australian context and in particular the point I raised about HILMER, is that small supermarkets generally tend to employ more people per volume of turnover/capita of populace. Not that I'm any statistician but I would say a bigger player like Coles or Woolies employ roughly half the numbers of what the small players in regional areas do. Like your IGA, Goodfellows, SSW (do they still exist?) types etc..

So the question is not so much about competition in regional areas that should be the focus or who they employ, but moreso about accessability to choice in lower populace areas outside of Australia's main cities.

You see the problem with HILMER is that it essentially structurally discriminated against half a dozen or so regional traders in a regional hub. Say like Men's Clothing stores where the majority sell the same shirt for a comparable price. This was determined to be anti-competitive. But a good hard look at the duopolies actions with regard to commercial rental space at major city malls in city areas was largely ignored by the academic experts. WHY?

It's quite easy to brand a couple of businesses in a small area as anti-competitive. Why didn't HILMER take a closer look at the commercial lease agreements of the major players in major city malls over a decade ago?

What is anti-competitive is a moot point?

However essentially the HILMER report did not look deep enough into the one-sided agreements between the duopoly and the commercial leasors with whom they entered into very favourable agreements. And certainly for the profit margins they charge consumers too! :bs:

Jim Carrey's classic movie Fun with Dick & Jane comes to mind.
 
A step in the right direction. About bloody time!

http://www.abc.net.au/news/stories/2009/09/18/2690155.htm?section=business

ACCC hails victory for supermarket competition

Posted September 18, 2009 14:23:00

The Australian Competition and Consumer Commission (ACCC) is hailing a deal with the big supermarkets as a major breakthrough in grocery competition.

Woolworths and Coles have agreed to stop using restrictive lease agreements with shopping centre landlords to prevent rivals from opening stores.

The ACCC's chairman, Graeme Samuel, says the restrictions have been a major obstacle for smaller and new supermarket companies that have wanted to expand.

"They need to have the ability to expand where consumers see the need, where consumers see the requirement to have an alternative at which they can shop for their groceries," he said.

"This is the first step along the way towards achieving that ability for expansion."

Mr Samuel says the move will make it easier for smaller and new grocery companies to take out leases.

"I think that whenever you have competition then the needs of consumers are met and consumer needs are to get choice, to get best quality of service, best quality of product, and in particular lower prices," he said.

But a competition expert says it is premature to say the ACCC has smashed the supermarket duopoly.
 
The sneaky part of them is that are introducing more American affiliated products and companies through Costco... Products that weren't available here but in America were are now here thanks to Costco. I've seen the que there I dont think they will go out of business soon
 
GumbyLearner said:
A step in the right direction. About bloody time!

"They need to have the ability to expand where consumers see the need, where consumers see the requirement to have an alternative at which they can shop for their groceries," he said.
Click to expand...

Can one of them bring the price for beef in their stores down please. The cost for a morsel of rib fillet is staggering.

Thankyou

Wysiwyg.
 
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