Woolworths and Coles Cut Prices to Attract Shoppers Amid Rising Living Costs
Amidst ongoing consumer concerns regarding rising living expenses, Australia’s two supermarket giants, Woolworths and Coles, have announced significant price reductions on hundreds of grocery items. This move, intended to persuade shoppers to continue choosing them over rivals, comes as families face increasing pressure on their budgets.
Coles is leading the charge with a reduction on over 680 products, shortly after Woolworths revealed it would cut prices on nearly 400 staple groceries. Although a family spending around $150 weekly at Woolworths could expect to save approximately $15 (about 10%), Coles is providing an average saving of around 21%. However, Woolworths has committed to maintaining these lower prices until 2026, while Coles’ discounts are temporary.
"We aim to reward our customers with savings on seasonal products they love, including fresh meat, seafood, and pantry staples,” stated a representative from Coles.
Yet, the announced spending benchmarks have drawn scepticism from shoppers. While Woolworths cited a typical family weekly budget of $150, many consumers believe the figure falls short of reality. "Who spends just $150 a week? It’s more like $400+," one shopper remarked. Another added, "$150 for a FAMILY? Seriously?" This sentiment reflects a broader frustration with grocery prices, exacerbated by rising inflation.
These price cuts are part of a wider response to customer feedback. Woolworths has also pledged to address these concerns, with discounting set to commence from 14 May. Here are some examples of Woolworths’ price reductions:
- Woolworths Chicken Schnitzel (600g): Reduced from $10.50 to $9.
- Greek Yoghurt (1kg): Dropping from $4.20 to $3.80.
- Coca-Cola (2L): From $4.20 to $3.70.
- Four N Twenty Party Sausage Roll (500g): Reduced to $7, down by 50 cents.
- 12-Pack of Maggi Noodles: Now $9, down from $10.
Coles is also offering its “Down Down” discounts on several items, including:
- I&J Salmon Portions (500g): Now $20.00 down from $26.00.
- Tip Top Café Raisin Toast: $5.50, reduced from $7.20.
- Gold Sunset Vegetable Oil (2L): Dropping from $16.00 to $9.00.
- Coles Choc Chip Muffin Bars (10pk): Now $5.90 from $6.60.
Both supermarkets face increasing pressure to justify their pricing strategies, reflected in various legal challenges and consumer complaints. Woolworths has recently come under fire for modifying loyalty program perks, eliminating double reward points for Delivery Unlimited service subscribers starting June. This program, priced at $15 monthly, offered free delivery for orders over $75.
A Woolworths spokesperson defended the changes, stating that the service remains popular and valuable. They emphasised the need to streamline offerings, focusing on speedy delivery rather than point accumulation. This sentiment reflects the competitive landscape between Woolworths and Coles, vying for customer loyalty in a time of financial constraints.
Consumers continue to express concerns over affordability, and the pressure on both retailers will only likely grow as families navigate challenging economic conditions.
