The real extent of the shortage of labor in supermarkets has been exposed when a boss says he is struggling to find workers because of a well-paid job.
Cost of living pressures are on the rise for many Australians and supermarkets have warned that there will be more pain for your weekly grocery bill.
Labor shortages, the cost of raw materials and the rising cost of fuel and utilities are among the factors affecting the price of groceries.
Speaking to The Australian’s Global Food Forum this week, Coles CEO Steven Cain said Australia had a labor crisis in many sectors.
“What is happening with Covid and the flu has worsened, our absenteeism today is twice as normal as with Covid and the flu, and the turnover rate in most industries is rising,” he said.
“Last week I was talking to one of our store managers and I asked him what the biggest challenge was.
“He said he was definitely trying to find the right people with the right skills, but he lost one in the store that will be a $ 80,000 a year dishwasher.”
Cain said grocers are also asking for more price hikes.
“We have received five times more requests for price increases than last year. Five times, “he said.
A Coles spokesman told NCA NewsWire on Thursday that the focus of the supermarket was to keep costs low for families.
“We appreciate that there are a number of factors driving inflation for all retailers, including rising raw material costs, rising energy prices, and transportation costs, but there are a number of ways in which what we provide value to customers, “they said. .
Includes weekly specials and other offers such as Flybuys points.
“This financial year so far, we have reduced the prices of more than 2,000 items from our range of more than 20,000 products,” the spokesman said.
“Customers who buy their My Weekly Specials items can save an average of $ 65 in their basket each week.”
Woolworths CEO Paul Turner said heavy rain and low sunlight in Queensland had reduced supply and quality of zucchini, beans and broccoli.
The same goes for truss, gourmet, cherry and solanato tomatoes, he added.
“We are still facing challenges with the supply of lettuce and berries, so while the new crops have been planted, it will take a few weeks for stocks to return to more stable levels,” he said.
“Right now, apples and citrus are at their peak, and pears and white potatoes have a great deal to offer and great value to our customers.”
Turner said the Hass avocado season was already underway and Woolworths had lowered the prices of more than 300 winter staples.
Woolworths offers about 5,000 different products each week.
In May, Woolworths cut the price of more than 300 winter products through August, including roast pork, soups and cold and flu medications.
Woolworths also recently introduced more than 650 own-brand products to its low-priced program, including flour, sugar and snacks.
The results of the third quarter of May showed that the prices of Woolworths vegetables were inflated, while the fruit had remained in slight deflation during the first three months of the year, driven by the prices of the apple and the avocado.
Woolworths reported an average global price inflation of 2.7%.
During the same period, Coles recorded inflation of 3.3 percent.
In the 2022 ALDI Australia price report released last month, the company said an ALDI basket was at least 15.6 per cent cheaper than other supermarkets, meaning an average family could save $ 1,555 a year.
“Our research shows that the majority (88%) of Australian shoppers are looking to change their spending next year, and this starts with finding the best deals,” ALDI Australia CEO Oliver Bongardt told the report.
According to the report, an average family of two adults and two children spend $ 192.19 a week or $ 9,994.05 a year on groceries.
But without Australia’s economic problems coming to light, it looks like prices will continue to rise for some time.
Australian Food and Grocery Council Executive Director Tanya Barden told NCA NewsWire that Australian food and grocery manufacturers had incurred costs that affected the entire supply chain.
“There have been significant increases in its costs as a result of a combination of factors: the pandemic, which has affected the workforce and the availability of key inputs; floods and bad weather that have affected supply chains and shipping costs; and geopolitical factors, including the war in Ukraine, that have affected global commodity prices, “he said.
“The costs of ingredients, packaging and shipping have been affected. The rising world price of oil is affecting the cost of transportation, packaging materials and fertilizers.
“For companies, this increases packaging costs by between 10 and 20% and fuel costs by between 10 and 15%.”
Ms Barden said she followed a decade of local food and grocery manufacturers absorbing cost increases.
“Many of these companies have reached a turning point where they have to overcome costs to remain viable,” he said.
“The difficult reality is that this is a global trend, and unfortunately costs are expected to continue to rise.
“Cost pressures are on the entire supply chain, from farmers to retailers, and it will get worse before it gets better.”
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