Battle moves to occupation of enemy territory
In the fiercely competitive supermarket industry, buying a high-performing store from beneath a competitor’s nose is known as the ”black truffle” – the Holy Grail. The stakes are high and a play can take years to execute, but to the victor go the spoils.
Price wars are the obvious way to win customers and bolster sales, but a vicious property war can wreak havoc on a competitor by transferring sales and customers to the new owner.
Coles decided to go after the ”black truffle” in the lead-up to Christmas 2011 when it hatched a plan to blindside Woolworths by buying one of its top 2 per cent-performing supermarkets. Sydney Morning Herald – Read more…