'Missing' figures show poor the biggest losers AFR
Information witheld from budget shows low-earning families could lose as much as 10 per cent of their income.
AnDy = totally agree the discount cycle had appeared to bottom, as per my post 2 weeks ago.
Although they actually still run that promotion you were describing - but not as frequently.
At the coles i go to they switch between 2 2l for $6, 4 1.25l for $7 and a 1.25l for $2.
the reason they do it is basically the Wal-Mart business model - give low income people bulk goods at discount and you will churn more volume product and they consume more of it.
Its prompted by the false savings psychology thats well documented in behavioural science - and coming from a poor background myself i can tell you its very real and it works.
But - as per my post the other day - the threat to CCL is the budget and its hit to lower income variable spending.
As per this morning's article - i think we may a further downleg in ccl earnings - because the budget struck right at the core of CCL's largest volume consumers.
I wouldnt be buying ccl above $9 because of this.
Regional sales of CCL product seem very likely to fall because of this - as well as in some urban areas.
CCL Price at posting:
$9.48 Sentiment: Hold Disclosure: Held
