Australians are set to see relief at the checkout as two of the country’s biggest supermarket chains, Woolworths and Coles, engage in a fierce price war, offering significant reductions on everyday grocery items. With the cost of living continuing to strain household budgets, these moves are seen as an attempt to win over shoppers while addressing rising concerns about food prices.
Woolworths Leads with Long-Term Price Reductions
As part of an effort to ease the financial burden on shoppers, Woolworths has committed to cutting the prices of over 400 popular products by an average of 10%.
The move, which will last until at least 2026, includes staples such as bread, rice, oats, and bacon, as well as more indulgent items like frozen berries, chicken schnitzel, and Coca-Cola. Woolworths Group Chief Executive Amanda Bardwell commented that while the reductions may seem small on individual items, they would add up to real savings for customers.
According to Bardwell, a family spending $150 weekly on groceries could save an average of $15 each week. She stressed that these reductions are not just a temporary promotional offer, but part of a long-term strategy to deliver consistent value to their customers.
Coles Offers Extensive Discounts Across Categories
Meanwhile, Coles is also entering the fray, announcing price cuts on over 680 products, with an average savings of 21%.
The price drops span a broad range of categories, including meat, seafood, pantry items, bakery goods, and frozen food. Coles’ Down Down promotion, which is set to run throughout the Autumn season, aims to make essential products more affordable for families.
According to a spokesperson for Coles, more products will be added to the Down Down section in the near future, with additional savings expected as the seasons change. The supermarket chain’s commitment to providing discounts is seen as a strategic move to retain customers amid the ongoing cost-of-living crisis.
Regulatory Scrutiny and Consumer Concerns
These price cuts come as Woolworths and Coles face increasing scrutiny from both the government and consumer groups.
A 2023 report by the Australian Competition and Consumer Commission (ACCC) found that the supermarket giants, alongside ALDI, had been raking in significant profits, with their product margins growing steadily over the last five years.
This has led to accusations of price gouging and shrinkflation, a practice where product sizes are reduced while prices remain the same or increase. In response, the Australian government, led by Prime Minister Anthony Albanese, has pledged to take stronger action on supermarket pricing to ensure fairer deals for consumers.
According to the Prime Minister, an ACCC-led task force will be established to provide recommendations on excessive supermarket pricing.
