In a bid to attract consumers amidst heightened competition from rivals Woolworths and Aldi, Coles has announced significant price reductions on over 300 grocery items. This initiative comes shortly after Woolworths revealed its commitment to lower prices on 400 products until 2026, prompting a pricing war among the supermarket giants.
Coles’ latest strategy, branded as the Down Down campaign, aims to slash prices on essential winter items, covering various categories including meat, bakery, pantry, and dairy products. Beginning 4 June, customers can expect an average discount of 19% across 307 specially designated items for a duration of 12 weeks. This offer supplements ongoing discounts, with a total of approximately 588 discounted prices available until the end of August.
“We are investing in reducing prices to provide immediate relief at the checkout,” stated Anna Croft, Coles’ chief commercial officer. She highlighted the supermarket’s focus on helping families create beloved meals at reduced costs.
In addition to price cuts, Coles has introduced its inaugural Flybuys Activate Bonus Value Points promotion, allowing shoppers to earn ten times the points on over 800 products throughout June. This initiative is designed to accelerate customers’ points accumulation, facilitating quicker access to discounts on future purchases.
Conversely, Woolworths, which holds the title of Australia’s largest supermarket chain, previously announced its plan to lower prices on nearly 400 popular items for an extended period. It has estimated that families spending around $150 weekly could save approximately $15 through these discounts. Woolworths CEO Amanda Bardwell emphasised that this move represents a shift towards reliable, long-term savings for customers rather than just short-lived promotional offers.
In contrast, Aldi has opted not to engage in temporary discounting tactics. CEO Anna McGrath asserts that the company has always focused on offering high-quality products at consistently low prices, rather than resorting to fleeting price drops to foster customer loyalty. Aldi has consistently been recognised as the most affordable option among major Australian supermarkets, as corroborated by CHOICE’s supermarket price comparison. The report indicated that a basket of 14 essential items was notably cheaper at Aldi compared to both Coles and Woolworths.
Overall, the supermarket price war in Australia has escalated, with each retailer striving to offer better value and retain consumer loyalty amid increasing living costs. Customers now have an array of price-cutting options available, potentially enhancing their shopping experience while managing their household budgets efficiently.
