2 of 2 customers will be spared the extra supermarket sweep laws as retailers try to cut down on the extra spending.
Key points:The supermarkets have already announced they will introduce a new sweep rule for this weekendThe rules will be rolled out on SaturdayThe rules are expected to save the supermarkets $40 million by the end of next yearThe rules came into force in July but retailers have already introduced a new set of rules aimed at curbing the extra spend.
A new sweep policy has been announced for this Saturday’s Good Fortune sweep, which will see a range of retailers from major supermarkets like Woolworths and Aldi to smaller independent stores like Trader Joe’s and JB Hi-Fi.
The rules, which come into effect on Saturday, are expected at the end to save supermarket chains up to $40million by the beginning of next month.
It comes after the supermarkets introduced the new rules in July, when they were expecting to save them up to up to 25 per cent of retail spending.
But a major retailers’ union has criticised the move, claiming it is “disgusting” and will lead to more spending and lower profits.
“We know the supermarkets are going to do a lot of extra stuff this weekend and it’s going to be a massive waste of time and money, and we’re very concerned that they’re going to end up doing that,” the National Retail Federation’s chief executive Simon Wood said.
“The supermarkets can go into their supermarkets and do their sweep, but if they’re looking for the extra money, there’s not going to come that extra money.”
Mr Wood said the supermarkets will be “worried” and “scared” about the extra costs that the new rule will entail, and they will be seeking legal advice on how to “maintain their integrity”.
“If we do have to implement the rule, we will have to have a very, very careful look at how we’re going about it, and how we’ll get the extra savings,” he said.
While some retailers have agreed to the rules, there are still some that have been against them.
“This is not good enough,” Woolworth’s chief operating officer John Cusack said.”[We] are not going for the cheapness of this and we are not looking for any discount or anything that we can get away with,” he added.
“I’m a little bit of a perfectionist, and I’ll be very honest with you, we’re not going down a very easy road.”
The supermarket rules came after a report last month by the Retail Industry Association of Australia (RIAA) which found the extra rules were costing retailers up to 23 per cent in sales.
The RIAA said the extra sweep rules were needed to stop shoppers from taking advantage of the benefits of discount and free shipping, as well as to stop retailers “spending the extra” on advertising and “wasting valuable time” on the rules.
The supermarkets will continue to carry out their sweep policies this weekend.