Suppliers squeezed by retailers, rising costs: report

 In Australia, Coles, NewZealand, Woolworths
The nation’s $111 billion food and grocery sector is being pincered between rising manufacturing costs and the unstoppable dominance of the biggest retailers to erode the financial health of suppliers stuck in the middle, a report commissioned by the Australian Food and Grocery Council has found.
Mounting labour, energy and regulatory costs were also chipping away at balance sheets while the growing weight of rebates paid by suppliers back to retailers has escalated to the extent where one dollar in every four earned by suppliers is finding its way back to retailers to fund discounts and promotions to shoppers.
Touted as the most detailed financial health check of the sector, the competitiveness and sustainable growth report conducted by KPMG on behalf of the peak suppliers group, has tracked the cost pressures for the sector over 2010-2013.  Sydney Morning Herald – Read more…

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