Full-blown supermarket price war imminent 13



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It’s easy to see that Coles, Woolworths and IGA want our money and they want it bad. There’s banners and signs and tags everywhere in store telling you this price has been slashed and this product is cheap cheap or down down. And now industry insiders believes that a full-blown supermarket price war is imminent.

According to SMH, Woolworths is being urged to stop their ‘cheap cheap’ promotion which focuses on weekly specials, and make bigger cuts to everyday products if they want to survive what’s coming.

You may have noticed that your local supermarket has more specials than usual, and it was caused by Woolworths’ $500 million investment into cheaper prices and improved service.

UBS analysts Ben Gilbert and Craig Stafford told SMH, “Historically, Australian supermarkets have been engaged in a marketing war,” UBS analysts Ben Gilbert and Craig Stafford said. “However, the step up in focus on price and material slowing in Woolworths’ performance suggest a price war is brewing, similar to those (overseas)”.

So what does this mean for consumers? Well, if the big chains follow examples from overseas, we could see cuts of up to 30 per cent on around 1000 products. After all, it’s the everyday basics and not the stock the retailers want to get rid of that we want.

UBS has recommended this: Woolworths (and other supermarkets) need to reduce everyday shelf prices, especially on products that drive foot traffic, and cut the number of products on promotion to about 20 per cent of sales (from 40 per cent currently), while making promotional price cuts deeper on “hero” products for greater impact, reports Australian Financial Review.

Tell us today, what would you like to see in your local supermarket? More cuts to everyday prices, or more randomised specials? What regular purchase is hurting your hip pocket?

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  1. so how much more Cheap Cheap rubbish will be dished out… that’s why we get it all, they are feeding the shareholders, who only eat, Australian salmon, Australian everything I bet, not Woolies rubbish or Coles rubbish that is all imported….. I just wish they would stop this stupid WAR on prices and get to it and make a WAR ON IMPORTS!!!!

  2. It is all very well to have a price war, but the swines at Coles and Woolies cut the price which they pay to suppliers (e.g. growers of vegetables and fruit), forcing them into insolvency, instead of cutting their profit margin or management bonuses. I think that all these companies (and many others that I have seen) need some ethics in the upper management

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  3. I shop at all three and go for price and customer service. The Nana berries debacle concerns me so I definitely shop Australian.

  4. I think the 4 ‘big boys’ have left it too late! Now that Aldi have such a firm foothold on the market, and increasing their share every day, their customers are becoming very loyal to the brand and won’t shift back again too easily! It’s about time prices everywhere came down anyway, Woolworths and Coles are by far the most expensive supermarkets in the world, or so the experts say, so perhaps the increased competition will bring them into line with the rest of the world. And don’t forget, there’s ANOTHER German brand supposed to be moving in here this year – that should make things even more exciting for customers!

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    • Cannot wait for the German supermarket chain “LIDL”, to arrive here, I spent a few weeks in Germany last year, and their supermarket prices are so low!!!…bought heaps of cosmetics, hair products etc back home with me….most are less then half the price, and some only a third of what you pay here, and NOTHING from China !!!!! great quality all the way !!

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      • Another supermarket to put small businesses out of work.Shame on you.

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        • I’m afraid it’s very much the same situation as the car manufacturers putting blacksmiths and farriers out of work a hundred years ago! Progress can’t be held back I’m afraid, the world, and the way we earn money is always changing.

  5. As a single retired person I would like to see less offers of buy 2 and get a saving. On most of these specials I only want one. A good example is cheese as I only normally buy one at a time as don’t use a lot.

  6. I would like to have an aisle or two devoted to products that are completely Australian . That are grown and produced in Australia by Australians .
    I would like to have them bring back some of the products they have stopped selling .. in favour of their ” home brands ” .
    As to fruit and vegetables I would like them to stop tightly wrapping vegetables in plastic . I would like our fruit and vegetables to be grown in Australia . That goods should be GM free . That there should be clear and honest labelling on products .
    Some of the prices are outrageous eg those for fresh herbs like parsley & mint .

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    • Stop buying your fruit and veg at a supermarket and try a greengrocer.Greengrocers are cheaper,fresher and friendlier.We need to keep small business in work and stop the supermarkets from monopolising everything.The same goes for butchers.The meat from the supermarket is rubbish and more expensive than from a butcher.This includes fishmongers,Why are we so lazy that we need to buy everything at a supermarket.Wake up people before it is too late.

  7. Can’t wait for liddl to get to Australia,, be interesting how woolies computer works then ??

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