It’s on: Coles and Woolies prepare to battle Aldi by slashing homebrand prices 412



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The supermarket wars have well and truly started, and we’re not talking about the bread or milk wars of late. This is a more serious kind of battle – Coles, Woolies and Aldi are all now in a head-on clash to get your cash.

Overnight the game plan of Coles and Woolworths was revealed, and they’re starting at the bottom… they’re slashing the price of home brand products, but subtly increasing the price of name brands.

According to a new survey from Deutsche Bank, private label grocery prices dropped 6.1 per cent in the June quarter. It was the sharpest fall in over 18 months, and now Woolworths and Coles are narrowing the previous 30 per cent price gap with Aldi.

The key to Aldi’s success lies almost solely in their sale of home brand products, and the other supermarkets know this. For years, Woolworths has had several types of fancy packaging and branding to persuade customers to buy home brand, such as their Select and Macro labelling.

But while they want to drive down prices of home brand products, they’re making sure when we do buy name brand groceries, they’re slightly more expensive. The survey showed that these prices rose 1.3 per cent in June.

Deutsche Bank analyst Michael Simotas told Fairfax, ​”The shopper going into Aldi is a shopper who cares mostly about price – what brings them through the door is a focus on value. By sharpening their private label pricing, Coles and Woolworths are hoping to stem that loss of customers”.

“While there remains some risk of a price war, at this time it seems Coles has not attempted to match Woolworths aggressively,” he said.

IGA is also a strong player in the market following the success of their Price Match guarantee, meaning they’ve slashed prices also.

It must be understood, however, while lower food prices are good for us, food price deflation makes it harder for retailers to cover rising costs unless volume increases offset the impact on profits – so there may not always be a price drop or perceived good value every time we shop.


We want to know, will Woolies and Coles dropping home brand prices make you shop there more often or instead of than Aldi? How many home brand products do you buy in a shop versus branded?

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  1. I buy homebrand sugar, salt, and cleaning products, I don’t eat a lot of canned food at all, I mainly use fresh food, but I do buy homebrand frozen peas and beans and (sometimes ) steakhouse chips

    2 REPLY
  2. Here in Cairns we don’t have an Aldi, only IGA and Night Owl as alternatives t o Woolies and Coles. I do appreciate that IGA support locals but unfortunately they are too expensive to do a weekly shop there. I shop at Woolies for convenience and variety and I do buy some of their home brand goods if I am using them for cooking, frozen veges etc. I would shop at Aldi if we had one here. Unfortunately we are too far north of Brisbane.

    3 REPLY
    • They will get to you eventually. Their expansion strategy is ever-increasing circles if you like as opposed to ‘dropping’ one here and there. It has to do with their distribution methods. Meanwhile, hold on tight!

    • we use to live in Cairns also & I would have loved aldi up there but now that I have one nearby I hardly go as they have more department store stuff than food items

  3. Well not sure that is going to work as Aldi products are good quality and I never buy home brand……cheapest just got cheaper but not necessary quality!!! Consumers should never be underestimated!!!

  4. has yo be good for the shopper, bit of healthy competition. Here in NZ they are also trying to compete with New World, they are having a super special on wednesdays because New World does, last week roast chicken $7

  5. Aldi product quality is excellent, The big names have had us bent over a barrel for far too long. We will continue to shop at aldi even if there is a pricing parity.

  6. I buy Coles tinned tomatoes. Other than that I avoid home brands. I try to buy the better quality items when they are on sale and get very cross when Coles stop stocking my favourite products to try to get people to buy the home products.

    1 REPLY
  7. I now shop in all 4 I used to be just a woolies shopper but got sick of the cost of food . So now I do a little be from each and buy my veg from a fruit shop which is very cheap. I find I save a lot this way it’s a bit like our parents used to shop .

    1 REPLY
    • What a waste of time spending the day going from shop to shop chasing cheaper groceries.

      1 REPLY
      • No, install the half price app on your smartphone and scan before leaving home, LOL Too easy

  8. It amazes me why people won’t buy home brand products when they come off exactly the same production line as your branded products the only difference being the packaging.

    1 REPLY
    • I worked in a factory for 6 months, the packaging changed to Coles but the product was the same

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