Coles vs Tesco - I have done online shops
#106
Re: Coles vs Tesco - I have done online shops
That means £1 in the UK will buy you just over $2 in Australia. I always thought the implied exchange rate was closer to 2:1 than the 2.5:1 or 3:1 some people on here keep using when they complain how expensive Australia is and how they're worse off here.
In the 11 years I've been here, things have improved for consumers. There's more competition now. Online shopping is much more common. We now have Costco and Aldi giving Coles/Woolies a run for their money. New car prices keep dropping - last year I bought a new VW Polo TSI for $23,500 including on road costs. If you buy books and electronics online, shop at Costco and Aldi, go to your local butcher and shop around for everything else I don't think Australia is so much more expensive. When you factor in higher wages here, I'm sure we have more purchasing power.
The strong Australian dollar is really benefitting Australian consumers. For example, we're going to Malaysia in April. I paid $225 per person return on AirAsiaX who're now flying out of Sydney. At the same time they've stopped all their flights to Europe because the weak Pound and Euro just doesn't make it worthwhile for them anymore. Australia's gain, Europe's loss. The longer the Australian dollar remains strong and the Pound/Euro weak, the more Australian consumers will be better off compared to their European counterparts.
In the 11 years I've been here, things have improved for consumers. There's more competition now. Online shopping is much more common. We now have Costco and Aldi giving Coles/Woolies a run for their money. New car prices keep dropping - last year I bought a new VW Polo TSI for $23,500 including on road costs. If you buy books and electronics online, shop at Costco and Aldi, go to your local butcher and shop around for everything else I don't think Australia is so much more expensive. When you factor in higher wages here, I'm sure we have more purchasing power.
The strong Australian dollar is really benefitting Australian consumers. For example, we're going to Malaysia in April. I paid $225 per person return on AirAsiaX who're now flying out of Sydney. At the same time they've stopped all their flights to Europe because the weak Pound and Euro just doesn't make it worthwhile for them anymore. Australia's gain, Europe's loss. The longer the Australian dollar remains strong and the Pound/Euro weak, the more Australian consumers will be better off compared to their European counterparts.
I agree about BE's fantasyland exchange rates. All that matters is the actual rate and your PP, or affordabilty as I like to call it. Personally, I find it slightly more expensive here, but also earn vastly more.
I disagree with your comments about AAX. Weak GBP would be a bonus for airlines flying into London as there are more tourists going there, which means money to be made for airlines - Emirates are piling big time into the UK. Part of the reason for AAX dropping Europe is that they have done a deal with MAS to allow them to fly into Sydney - which will be a massive market for them.
#107
Re: Coles vs Tesco - I have done online shops
The London/Frankfurt - KL route obviously attracted a lot of Europeans. With their economies in a long-term slump this market became less attractive than the Australia - KL routes. Seems logical enough. Better to focus on a market with a higher growth potential.
#108
Re: Coles vs Tesco - I have done online shops
I disagree with your comments about AAX. Weak GBP would be a bonus for airlines flying into London as there are more tourists going there, which means money to be made for airlines - Emirates are piling big time into the UK. Part of the reason for AAX dropping Europe is that they have done a deal with MAS to allow them to fly into Sydney - which will be a massive market for them.
Sure, more tourists are going to Europe and a lot of those tourists are coming from Australia and Asia. This is offset by fewer Europeans travelling. My point was that the strength of our currency and our economy mean we have more options, more competition and lower prices.
#109
Re: Coles vs Tesco - I have done online shops
Meanwhile, the purchasing power gap continues to grow.
#110
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Re: Coles vs Tesco - I have done online shops
I can't say I have ever seen statistics that show that most Aussies earn considerably more than their UK counterparts. I have read on these forums quite a few people saying they earn less or the same though. It is one of the reasons I am not money orientated though, life is too short to worry about how much you earn as long as you are happy.
#111
Re: Coles vs Tesco - I have done online shops
Median household income in Australia is higher than UK's. See http://en.wikipedia.org/wiki/Median_...nal_statistics (note these are 2007 data; arguably the gap would be higher now due to intervening events mainly the 2008-09 GFC and the eurozone exposure).
On the basis of GDP per capita, using Purchasing Power Parity dollars
AUS - 41K
UK - 36K
http://en.wikipedia.org/wiki/List_of...PP)_per_capita
The difference is even more pronounced in USD:
AUS - 67K
UK - 40K
http://en.wikipedia.org/wiki/List_of...al)_per_capita
If AUD continues to be strong, the gap will continue to widen.
As well, Australia has the highest median wealth in the world and second highest average wealth (next to Switzerland).
https://infocus.credit-suisse.com/da...lth_report.pdf
#112
Re: Coles vs Tesco - I have done online shops
I can't say I have ever seen statistics that show that most Aussies earn considerably more than their UK counterparts. I have read on these forums quite a few people saying they earn less or the same though. It is one of the reasons I am not money orientated though, life is too short to worry about how much you earn as long as you are happy.
but as you said, as long as you're happy and feel secure, it's all fine.
#113
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Re: Coles vs Tesco - I have done online shops
I guess if people are money driven it's fine, it really makes no difference to me personally and all these comparisons are skewed by wacky exchange rates but whatever makes individuals happy I suppose.
#114
Re: Coles vs Tesco - I have done online shops
I agree about BE's fantasyland exchange rates. All that matters is the actual rate and your PP, or affordabilty as I like to call it. Personally, I find it slightly more expensive here, but also earn vastly more.
I disagree with your comments about AAX. Weak GBP would be a bonus for airlines flying into London as there are more tourists going there, which means money to be made for airlines - Emirates are piling big time into the UK. Part of the reason for AAX dropping Europe is that they have done a deal with MAS to allow them to fly into Sydney - which will be a massive market for them.
I disagree with your comments about AAX. Weak GBP would be a bonus for airlines flying into London as there are more tourists going there, which means money to be made for airlines - Emirates are piling big time into the UK. Part of the reason for AAX dropping Europe is that they have done a deal with MAS to allow them to fly into Sydney - which will be a massive market for them.
#115
Re: Coles vs Tesco - I have done online shops
I was in London 18 months ago and it was heaving with foreign tourists. Weak GBP has got to have something to do with that.
#116
Re: Coles vs Tesco - I have done online shops
Sure, more tourists are going to Europe and a lot of those tourists are coming from Australia and Asia. This is offset by fewer Europeans travelling. My point was that the strength of our currency and our economy mean we have more options, more competition and lower prices.
#117
Re: Coles vs Tesco - I have done online shops
When I first came on these boards there used ot be lots of new Migrants from the UK gleefully jumping up and down about what a killing they had made with their new found finanancial bonanza. Thats all stopped now. In fact the shoe is well and truly on the other foot. "Tis human nature after all. Lets put it this way now is the best time financially in decades possibly ever for people that are a tad unsure about Australia to move back. They are mad if they dont take advantage of this financial windfall...... Unless they reckon the growing financial gap is going to get even wider.... It couldnt could it ?
#118
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Re: Coles vs Tesco - I have done online shops
Yes I agree with that but these wage comparison and local wealth surveys are totally meaningless. They convert wages into USD and tell us how wealth in Australia has increased and in the UK fallen when in fact neither has happened as it is all because of the USD rate in relation to either country.
When we came back 11 years ago we did well and bought at exactly the right time, now we are hoping to do well in the opposite direction.
When we came back 11 years ago we did well and bought at exactly the right time, now we are hoping to do well in the opposite direction.
When I first came on these boards there used ot be lots of new Migrants from the UK gleefully jumping up and down about what a killing they had made with their new found finanancial bonanza. Thats all stopped now. In fact the shoe is well and truly on the other foot. "Tis human nature after all. Lets put it this way now is the best time financially in decades possibly ever for people that are a tad unsure about Australia to move back. They are mad if they dont take advantage of this financial windfall...... Unless they reckon the growing financial gap is going to get even wider.... It couldnt could it ?
#119
Re: Coles vs Tesco - I have done online shops
The strength of the Australian dollar has decimated the manufacturing and retail industry possibly to the point of no return. The competition and lower prices you talk about are online from foreign retailers. The Australian retailers are struggling as they have failed to pass on the savings of their strong purchasing power to the consumer meaning the consumer has gone direct. Once the commodity boom ends it will possibly look like folly not to have devalued the AUD.
Retail is one of those industries that can keep on reinventing itself though, so no shit needs to be given in either country.
Last edited by Amazulu; Jan 23rd 2012 at 4:17 am.
#120
Re: Coles vs Tesco - I have done online shops
Yes I agree with that but these wage comparison and local wealth surveys are totally meaningless. They convert wages into USD and tell us how wealth in Australia has increased and in the UK fallen when in fact neither has happened as it is all because of the USD rate in relation to either country.
When we came back 11 years ago we did well and bought at exactly the right time, now we are hoping to do well in the opposite direction.
When we came back 11 years ago we did well and bought at exactly the right time, now we are hoping to do well in the opposite direction.
even if you consider per-capita income on a purchasing power basis, AUS is still higher. (see above)
AUS also has lower GINI coefficient which means there is more balanced distribution of income in AUS than in the UK.
https://www.cia.gov/library/publicat...elds/2172.html
as well, you have to realise the higher AUD exchange rate is here to stay therefore i don't think the USD comparison is just a short-term aberration .