GroceryWatch
The recently implemented Federal Grocery Price Watch Scheme fails to address several social issues that are of much more importance. Basically, it fails to be of any benefit to the people who need it most, that is older people and those people existing on very reduced incomes. Both these groups of people have limited access to the internet and to personal transport.
I live in the federal electorate of Denison, and as such have had the "benefit" of Duncan Kerr's Denison Report "Price Watch" for several years. I shop at three different large supermarkets a week on average and shop at seven in total. The new Choices GroceryWatch reports the difference between weighted $175 baskets of consumers goods is $1.13. This is less than 1% difference and is the average of several supermarkets across all of Southern Tasmania.
But even worse, GroceryWatch fails to take into account the various realities of grocery shopping. There are four main effects that the Labor Government don't consider; location, knowledge, supplier effects and specialised markets effects. When you consider these effects it's easy to see this is another waste of time and money, although it may divert the public from more pressing issues.
In a small amount of detail the effects are:
_Location Effect_: People tend to shop as close to their home as possible, especially if they are elderly or relatively poor. So there is little benefit in knowing you can save $2 if you have to take two buses or trains or pay a Taxi twice as much. Similarly, it takes longer to get to a more distant shop. Finally, some shops are simply better designed. If you are elderly, infirm, disabled or have 3 kids it makes a lot of sense to shop where it’s convenient and you don’t have to walk too far. I always go to a particular shop when it rains so I don’t have to walk a few hundred metres in the rain.
_Knowledge Effect_: Have you ever gone to a different supermarket and spent 15 minutes trying to find where the split peas are? Again, the people most in need are less able to find items in a different supermarket or any shop. Imagine having three upset kids and trying to find something you need in a supermarket or shop you’ve never been in before.
_Supplier Effect_: The price of items is sometimes determined by the supplier. An example of this was the recent concurrent special in Coles and Woolworths of Cambells soups “2 for $4”. Not much point going to somewhere different in this case, and finally,
_Specialised Markets_: The prices can be very low. I shop for vegetables and fruit at such a market and the prices are on average about 1/3 of the larger chains. But, the problem here is they don’t have a full range of goods, you might not be able to buy margarine and you can’t get Soy milk there. So, again this means the people least able to afford items have to go somewhere else anyway. It might seem cheaper but having to pay a taxi, or walk to a bus or train with a load of groceries only to have to go to Coles/Woolies as well is absurd.
In general, these schemes only seem good. I doubt they’re of benefit to the more affluent members of out society. I'm sure they are of no use at all to the people who really need help the most.
Finally, I doubt Rudd and his experts have ever shopped for more than a new suit in their lives. Choice's GroceryWatch is like a band-aid on a broken leg, it feels better but it doesn't really help.
Other entries on this topic are in the Retail Category Archive
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