Businesses only exsist to make a profit - otherwise they are...

Businesses only exsist to make a profit - otherwise they are called a charity .......

those that generate the highest economic returns get access to the cheapest capital........and also see competition !!!!!!!!!!!!!!!!!!


Dick Smith has hit the nail on the proverbial head:

“There is absolutely no doubt in my mind that Aldi with its incredibly low overheads — they hardly employ any Australian staff — and its private ownership in Germany — they don’t have the high costs of public listing — will mean they will eventually send one or both of our Aussie shareholder owned food retailers out of business,” he said.



Mr Smith pointed out that SPC manufactured “Australian icon” IXL jam, which sells at 72 cents per 100g. The Aldi equivalent, Grandessa, sells at 28 cents per 100g, nearly one third the price, while its premium Grandessa jam, imported from Belgium, sells at 55 cents per 100g.

I would ask:

how is it that a comparable product sells for 23.6% CHEAPER even after freight is included .......

check the cost of wages in sunny Belgium versus Oz ........


“Of course, as Aldi becomes more successful with lower and lower food prices Australians will become more and more obese with the associated health problems.
“And who will pay for that? Yes, Aussie taxpayers. Not the Albrecht family in Germany.


Sadly - Aussies wont "pay for" aussie made - as evidenced by the demise of Dick Smith Foods / Ford / Holden / Toyota / and a lot of aussie made (but foregin owned food companies - see Nestle / Simplot et al .....


as GT has said - its a question of "how" woollies (and Wes and MTS) address the competition issue as to what rate of return they generate (and hence the share price ......)

looooong way to go yet in this "war" ...............

rgds
V_H