Coles to squeeze more blood from suppliers
The AFR reported that Coles plans to keep the lid on food prices by taking a tough stance on supplier requests for price increases. Coles' MD said the retailer will only grant such requests when they are justified by rising costs. Coles' has obviously figured out that with the like of Aldi to compete with on price point, they can't ask their customers to subsidise its bloated cost base. So, instead of focusing on becoming more operationally efficient, it will squeeze more blood from suppliers. We're not the only ones who this for what it is, with growing calls for a royal commission into the major supermarket chains' treatment of suppliers.