The retail price war is a hoax...
19.01.2015Is this really a food price war between the monopolies? Of course not! They are just trying to stop Lidl’s march into their 80% market share. The announcement covers a tiny fraction of their 25 000 products on the shelves. Compared with Lidl and shop prices in Sweden both Kesko and S-group are 20% to 30% more expensive. More shocking news came from the dominant trade union, PAM, the shop workers labor union, who are afraid that falling prices may cause some workers to lose their jobs! Given the huge market share of these two retail monopolies, I cannot understand these shortsighted comments. The unions should rejoice that some food prices fall. They benefit the whole population, including all of their workers. Don’t they understand that the lack of competition causes unemployment because new entrants are killed off and that the lack of competition has meant that prices have been far too high for too long.