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calebmarshall
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Coles and Woolworths are typically the same, so there’s really no way they can differentiate themselves, especially when it comes to a value proposition.

I suppose you either differentiate yourself as a provider of value or you differentiate yourself as a low-cost provider.

And really the market does not see Coles or Woolworths as fundamentally any different. So that causes them to market their business on price. It’s also easy for them to do that when they have fantastic contractual terms with suppliers (60 days from memory) so their low-margins, turn into something significant when they have that 60 days of liquidity to invest it elsewhere for a short term return.