As Australians tightened their belts due to the high cost of living, a proposal in the Victorian parliament could bring some relief.
The Herald Sun reports about a profit cap on household stables to combat supermarket price hikes. The proposed legislation would allow the government to declare certain products as essential grocery items, setting a profit limit on these items.
The Victorian Greens, Australia’s green political party, spearheads this proposal.
The proposal
The Greens argue that necessary steps need to be taken to curb the steep rising living costs while supermarkets are making a profit. If this draft law is passed, it could give the government the authority to declare certain staples like fruit, vegetables, bread, and milk as essential items.
Austrian News reports that while it would be “ultimately up to the government” to decide, the regulatory body Essential Services Commission would set the profit margin.
Cost of living
As Australians feel the financial pinch, the police have released shocking statistics related to shoplifting.
Theft-related crimes in South Australia are on the rise, allegedly fueled by the high cost of living. 9News reports statistics from the local police department, revealing a 29% rise in shoplifting over the past year.
Authorities state that the problem seems to be far wider than just South Australia. Police commissioner Grant Stevens believes it’s a “national trend” attributed to various socio-economic factors.
Retailers feel the pressure, too
Australian Retailers Association (ARA) CEO Paul Zahra says consumers seek ways to save money and stretch their budgets. They are searching for bargains online or in-store to get through the month.
Zahra says consumers are focusing on essentials like food and are no longer prioritizing fashion and home appliances.
With pressure on household budgets, retailers also feel the heat.
Securing sales with tight budgets
The ARA recommends focusing on sales that are “driving value” for customers. People are seeking value and those events become even more important in a cost of living crunch,” says Zahra.
While customers hunt for bargains, sales, and deals, there are red lights to be cautious about. Marketing experts warn that discounts must be used with caution. Customers often infer quality from price.
Behavioral science consultant Richard Shotton says: “If you radically offer discounts, you are training your consumers to think that your product is poor quality.”
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
