Woolworths has revealed it will cut prices on an additional 100 essential products this August as part of its ongoing competition with Coles amid a supermarket price war. This initiative forms part of Woolworths’ strategy to provide “lower shelf prices” on items including pasta sauce, rice, olive oil, cereal, and muesli bars.
The grocery chain claims that consumers could save up to $110 on their grocery bills when purchasing all 100 items included in the discount. Since introducing this pricing strategy in May, Woolworths has stated that total savings for customers could amount to $50 million by the end of August. So far, they have added 700 products to their reduced price catalogue.
Amanda Bardwell, Chief Executive of Woolworths Group, emphasised that these price reductions are not merely temporary offers but are intended to provide long-term price stability on essential goods. She noted that customers are responding positively to the lower prices, particularly on staples like bread, yoghurt, cheese, and baby wipes.
The newly discounted items include Sacla Pasta Sauce for $3.50 and a 1.1kg bag of National Confectionery Co. lollies priced at $12.50. A full list of these products will be available online starting tomorrow.
Both Woolworths and Coles have been aggressively cutting prices in recent months to attract customers, especially following a worrying report from the Australian Competition and Consumer Commission (ACCC) regarding grocery pricing. Woolworths has indicated that their lower prices will be sustained until at least 2026.
In a parallel move, Coles recently announced a drop in the prices of 500 items in response to this competitive climate and has launched a loyalty program that offers shoppers tenfold points on select products.
As both supermarket giants prepare to disclose their full-year results next week, the ongoing price cuts highlight the intense rivalry between them as they aim to gain favour with budget-conscious shoppers.