IT’S been dubbed the “new campaign to promote fresh, quality produce”, but Coles’ plan to slash fruit and veg prices by up to 50 per cent has raised the ire of Rockingham’s fresh food retailers.
The latest battle in the supermarket wars, announced on Monday, will enable shoppers to buy essential groceries at drastically slashed prices.
The costs of at least a dozen varieties are expected to plummet every week.
Coles Fresh Produce Manager Greg Davis has called the campaign “good news” for Australian growers, who have had a surplus of produce this year thanks to ideal growing conditions.
However, Malibu Fresh Essentials owner Basil Paparone said that while his business was not in direct competition with the large supermarkets, he was concerned producers would suffer.
“They’ll be lowering the grade of product to be able to meet those pricing standards,” he said.
“At the end of the day, nobody wins the discount war.”
Mr Paparone said Coles’ business model could push competitors out of business and leave the surviving big supermarkets with a monopoly.
Mr Paparone said the local businesses most likely to suffer due to Coles’ fresh produce cost-cutting were those based in large shopping centres.
Baldivis producer/retailer Tony Galati, who owns four Spud Shed fresh produce stores in WA, said Australians should rally together to support small businesses.
“In 10 years time there will be no competition,” Mr Galati said.
“People ask, ‘why doesn’t the government step in’ but it’s a free market in Australia, so they have no jurisdiction, no authority to step in.”