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Family First unit based pricing misleading: ARA says

Peak retail industry body the Australian Retailers Association (ARA) believes the Family First Party, while acting with the right intentions, needs to analyse more deeply their suggestion to introduce unit-based pricing to groceries.

ARA Executive Director Richard Evans said the assumption that unit-based pricing would enable Australian families to cut their grocery bills is deceptive.

"For any regular grocery shopper, it is a ‘no-brainer' that prices will vary the more you buy.

"However, the assumptions of reducing the amount of money handed over at the supermarket checkout is misleading as the final payment may indeed go up if the unit price was cheaper on greater quantities. Shoppers may get a better unit price but their actual cost will go up as they buy more.

"The cost of applying this system will of course be added to the unit cost which Family First ignore," Evans said.

Evans also believes if the market wanted this type of pricing then retailers will respond to consumer demand, adding, that at the moment it seems there is no demand.

"The market certainly does not need heavy-handed legislation to introduce it. Consumers already have an excellent tool to use when considering unit pricing, it's called a calculator," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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