Keeping the lights on ranks among retail’s top challenges

Huge increases in utility prices are adding to the pressure on Australia’s major supermarket chains as they seek to balance rising power, water and wages bills with sagging profitability.

Wesfarmers chief Richard Goyder revealed at the conglomerate’s earnings announcement that Coles’ utility bill had spiked by as much as 14 per cent at the same time as it was forced to pull forward price cuts and promotions to safeguard its hard-earned market share against a resurgent Woolworths.

There are some upsides to the concerns about energy security – sales of generators at Wesfarmers’ Bunnings chain in South Australia have spiked following black-outs in that state – but those are far outweighed by rising utility bills. Sydney Morning Herald – Read more…