Coles has recently announced a significant price reduction on over 300 grocery products amidst fierce competition with rivals Woolworths and Aldi. This move is part of Coles’ latest promotional push, dubbed the “Down Down” campaign, which aims to provide an average discount of 19% on essential winter items, effective from June 4 and lasting for 12 weeks.
In a bid to attract shoppers, Coles’ price cuts come shortly after Woolworths declared a price drop on nearly 400 products, promising these lower prices will be in effect until 2026. Aldi has also joined the fray, with its CEO, Anna McGrath, vowing that they “will not be beaten on the cost of your weekly shop.”
Under the Down Down initiative, customers will not only benefit from new discounts but also from ongoing price reductions on 588 items already marked down in stores. Coles is determined to alleviate financial pressures on shoppers during winter, according to their Chief Commercial Officer, Anna Croft, who emphasised the commitment to improved affordability at the checkout.
The price reductions encompass a range of categories, including meat, bakery, pantry, and dairy essentials. As part of the campaign, Coles has also introduced a new offer for Flybuys customers, allowing them to earn 10 times the usual rewards points on more than 800 products throughout June, aiding them in accumulating points faster for future discounts.
Woolworths had previously highlighted that families spending $150 weekly could save approximately $15 by opting for its discounted items, which include popular groceries like chicken schnitzels and dairy products. Woolworths CEO, Amanda Bardwell, presented this initiative as a genuine effort to provide lasting savings for customers rather than a short-term strategy.
In response, Aldi maintains that its everyday low pricing model contrasts with temporary discounts offered by competitors, claiming strong customer loyalty stems from consistent pricing rather than flash sales. Aldi’s position has been reinforced by recent findings from CHOICE, which indicated that its prices are lower compared to Woolworths and Coles for a basket of essential items, making it the most economical option for consumers.
Woolworths was found to be $15.83 pricier than Aldi for a specific basket, while Coles came in just $15.33 higher, illustrating the competitive landscape of the Australian grocery market.
As Julys approaches, it appears the price reductions by these supermarket giants will continue to remain a hot topic among consumers and industry analysts alike, with all eyes on how this supermarket rivalry will impact consumer choices and the overall market landscape.
