Supermarket alliances dominate Australia's retail scene

Supermarket alliances–between Shell and Coles, and Caltex and Woolworths–are now handling 40% of total retail fuel sales in the country, according to the Australian Institute of Petroleum (AIP). AIP says customer loyalty programs have become a “significant feature” of fuel retailing. “Supermarket chains are purchasing billions of liters annually from oil companies, and therefore have the ability to negotiate lower wholesale prices than single service stations or small chains,” the AIP report says. (August 25, 2006)