Woolworths and Coles Compete to Offer Better Grocery Prices Amidst Cost-of-Living Concerns
Woolworths and Coles, Australia’s leading supermarket chains, have intensified their efforts to entice consumers during the ongoing cost-of-living crisis. As they race to provide discounts, many shoppers remain sceptical about the perceived savings.
Recently, Coles announced a discount on over 680 items, shortly after Woolworths revealed reductions on nearly 400 grocery staples. For families currently spending approximately $150 per week at Woolworths, they can expect to save around $15, equating to roughly 10% off their total. In contrast, Coles is promoting an average saving of 21%. However, a crucial distinction exists—the price cuts at Woolworths will remain in effect until 2026, while Coles’ discounts are temporary and will only last a few months.
In a statement, a Coles spokesperson emphasised that their promotions reflect seasonal availability, aiming to reward customers with savings across various categories, including meat, seafood, pantry staples, and household items.
Despite these offers, some consumers have voiced their disbelief regarding Woolworths’ suggested average weekly spend of $150 for a family. According to research from Finder, the typical family grocery bill stands at $204, with many shoppers suggesting their weekly spending is even greater. Comments from frustrated customers included: "Who spends just $150 a week? Try $400+," and "You’re kidding, right? $150 for a family?" These reactions highlight a disconnect between the supermarket’s assumptions and the reality faced by many families amid rising costs.
The discounts started on May 14, following extensive feedback from customers expressing the need for more value in their weekly shopping trips. Some notable items slashed in price by Woolworths include:
- Chicken schnitzel (600g): Reduced from $10.50 to $9.00
- Greek yoghurt (1kg): Dropped from $4.20 to $3.80
- Coca-Cola (2L): Now $3.70, down from $4.20
- Four N Twenty sausage rolls (500g): Priced at $7, previously $7.50
- Maggi noodles (12-pack): Reduced to $9.00 from $10.00
- Babylove nappies: Lowered to $16.00, a $2 decrease
- Dishwasher pods (45-pack): Now $11.70, down from $13.00
Coles also unveiled its own set of discounts, valid for the coming weeks, including:
- I&J Salmon Portions (500g): $20.00, previously $26.00
- Tip Top Café Raisin Toast: Reduced from $7.20 to $5.50
- Sunset Vegetable Oil (2L): Now $9.00, down from $16.00
- Coles Choc Chip Muffin Bars (10 pack): Reduced to $5.90, down from $6.60
- Pine O Cleen Disinfectant (1.25L): Priced at $5.60, down from $8.00
- Quilton toilet tissue (4 ply): Now $13.50, after a $1.50 reduction
- Fairy Platinum Plus Dishwashing Tablets (31-pack): Reduced from $39.00 to $19.50
In light of these price cuts, Woolworths and Coles have been under considerable pressure to respond to customer complaints about rising grocery costs. Both supermarkets are currently facing scrutiny, including Federal Court actions and multiple class action lawsuits over their pricing strategies.
Furthermore, Woolworths has found itself in hot water recently due to alterations to its customer loyalty programs. For instance, customers enrolled in the Delivery Unlimited scheme were informed of the removal of double reward points starting June 1. This subscription service, which costs $15 a month, previously granted free delivery for orders over $75.
In response to customer feedback, a Woolworths representative stated that the service remains popular and aims to provide greater value and convenience to subscribers. Changes will now focus more on timely deliveries while removing the double points benefit, although the company has introduced complimentary pick-up services for direct orders.
Lastly, members of Woolworths’ Everyday Extra program will no longer receive a 10% discount on Big W purchases once per month, effective from June 1.
As the competition heats up, it remains to be seen how these supermarket giants will navigate consumer expectations and adapt to the economic landscape while retaining customer loyalty.
