Small businesses now under siege

FIGHTING ON: Mango Mix's Maroune Nicolas and Michael Estephan.

SMALL businesses could be the biggest casualty in the supermarket giants' new war over fruit and vegetables prices, according to a Marsden fruiterer.

Mango Mix owner Michael Estephan, whose family owned store is located next to a Coles supermarket, said Coles' decision to slash the prices on selected fruit and vegetables would have a devastating impact on small business.

"We're doing are best to try and compete but we're now losing money and can't compete anymore," he said.

Mr Estephan, who has been selling fresh fruit and vegetables for 15 years, said he has been forced to sell certain produce lines at less than market price just to keep his customers coming back.

He claimed Coles' new campaign of cutting the price of at least 12 popular fruit and vegetables each week was a trick to entice struggling families to come into their store.

"They're taking advantage of the situation (hard economic times) and trying to get as much business from people as they can," Mr Estephan said.

Mr Estephan speaks with fellow fruiterers each week.

He predicted at least 60 small businesses like his would shut down across Queensland as a result of the escalating price war between Coles and Woolworths.

"People don't realise that in a few months time when small businesses go, these mobs are going to start ripping people off because they have the major share of the market," he said.

Logan Chamber of Commerce president Bill Richards said small business was the lifeblood of Logan's economy.

"I know people are concerned about the price, but it's not always about that, it's about service," he said.

"If you get someone who always treats you well, presents their produce in a good way and can be competitive by putting on some things a little cheaper, then you always go back; that's the advantage small businesses have."

Coles defended their decision to discount selected fruit and vegetables each week.

"Independent stores compete very effectively alongside supermarkets and often benefit from the increased number of customers visiting shopping centres as a result of a larger store being present," a Coles spokesman said.

"Smaller shops that focus on their customers and offer something different tend to do well."

Mr Estephan vowed to take the fight up to Coles by continuing to offer fresh quality produce for the best possible price and top service.