Further to this subject of Coles and Woolworths market power
and price gouging:
Many popular commentators have noted the significant
cash profit of the two dominant supermarkets.
None, that I have heard, have commented on the exceptional
ROE of the two companies. Just compare this with the current
ROE of the major banks.
The banks had much higher ROE a few years ago but this was
cut down by regulatory changes. The banks still own us so they
are able to screw us at will, and make big profits.
Regulation of the Duopoly may restrict Coles and Woolworths
but they also own us so we will still be screwed.
