MGA Director Lincoln Wymer featured in Fresh Plaza article on rising fuel costs impact on independent supermarkets

Master Grocers Australia Independent Businesses Australia director Lincoln Wymer was quoted in Fresh Plaza today highlighting the mounting pressure on independent supermarkets as supply chain costs continue to rise due to Middle East trade disruptions.

In the article titled “Independent Australian supermarkets absorb rising fuel costs,” Lincoln outlined how smaller retailers are being hit particularly hard by increased delivery costs and minimum order thresholds from suppliers.

“The big one’s been the increase in the minimum delivery cost,” Lincoln said. “Before, they might have been US$130. They’re now saying we’re not sending it unless it’s a US$325 order now. That’s really hurting the small suppliers because sometimes we don’t need to spend that much money on their products.”

Lincoln, who is also chief operating officer of the Reddrop Group, detailed the dramatic rise in transport costs affecting the supply chain.

“I spoke to our main transport company, and he’s gone from about US$13,000 a month to over US$19,500 in fuel costs alone,” he said. “He nearly exclusively supplies our stores, so that US$6,500 a month has to come out of our businesses.”

While recent government fuel excise cuts have provided temporary relief, Lincoln warned the situation is becoming unsustainable for independent retailers.

“If this continues much longer, I just can’t see how a grocery store or supermarket can absorb these costs into their narrow margins,” he said.

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