One thing a lot of people miss is the sustainable competitive advantage WOW has in its premier logistics network i.e. the cost of getting a product from the supplier to the stores. Competitors have higher unit costs for this reason. Their choice is stark: cut prices to be competitive and be less profitable, or be a non starter. Another competitive advantage is the existing network of stores. There is no opportunity for competition in many places as the available real estate simply does not exist. There is an example in Perth where Coles had to buy and demolish a hotel (much to the community's chagrin as this was a favourite watering hole) to build a store just to get a foot in the door.
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