Australia’s small-scale grocery stores are expected to be exempt from the mandatory unit pricing scheme that will compel supermarkets to label prices of products per unit of measurement.
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The regulation, to be introduced by the Australian government in a matter of weeks, follows a recommendation from the Australian Competition and Consumer Commission’s inquiry into the grocery sector.
However, the move has met considerable opposition from independent retailers, who claim they will find it difficult to compete with the multiples if unit pricing is introduced.
The National Association of Retail Grocers Australia (NARGA), representing the independents, told Australia’s Senate hearing into the proposal in August that smaller retailers would be unable to absorb the cost of such a scheme. The cost would therefore be passed along to consumers, making independent retailers less competitive.
“It would make it difficult for them to be more competitive, and from the customer’s perspective, introducing unit pricing may simply have the effect of raising prices,” NARGA spokesman Ken Henrick told the Senate hearing.
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By GlobalDataResponding to these concerns, it is believed that the Australian government has decided to make smaller grocers exempt from the scheme.
Citing unnamed sources, The Australian reported that small businesses with a cut-off for supermarkets of a certain size, probably about 1000 square metres, would not be included in the proposal.
Multiples including Woolworths and Aldi have already taken steps to introduce unit pricing across their stores.
