Woolworths, Coles value slumps following price gouging allegations
The brand value of Australia’s two major supermarkets has slumped considerably, leaving the door open for a new No.1.
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Australia has a new most valuable brand after Woolworths and Coles’ stocks slumped on allegations of false discounting.
According to Brand Finance Australia’s annual report, Commonwealth Bank has reclaimed top spot to become the nation’s most valuable brand.
Woolworths and Coles’ brand value plummeted by a combined 31 per cent over the last 12 months.
Woolworths’ brand value fell 17 per cent to $12.7bn in 2024, while Coles’ brand value dropped 14 per cent to $8.4bn.
Combined, the major supermarkets’ value plunged $4.1bn.
The report noted negative headlines, a Federal Court case and consumer outrage in 2024 contributed to the two supermarkets falling in value.
Woolworths, which was previously Australia’s most valuable brand, slipped to second place, while Coles dropped from fourth place to fifth.
Telstra and ANZ are third and fourth respectively.
Commonwealth Bank delivered a bumper $9.48bn in net profits in 2024 off the back of its growing retail presence.
“Successful brands exemplify resilience and innovation while providing assurance for consumers, proving that adaptability is crucial for navigating today’s economy and securing sustainable future growth,” Brand Finance Australia managing director Mark Crowe said.
Woolworths and Coles’ slide comes as the two supermarket giants face intense consumer backlash.
According to the ACCC, Woolworths and Coles misled consumers through discounting prices claims on hundreds of supermarket products. The allegations follow a social media campaign on platforms including Reddit that led to the consumer watchdog’s investigation.
The ACCC alleges the supermarkets offered certain products at a regular price for at least 180 days before increasing the price of the product by at least 15 per cent for a relatively short period of time and then placing it in their “Prices Dropped” or “Down Down” program.
The ACCC alleges the display of the Prices Dropped and Down Down tickets was misleading, as the price of the products was higher than or the same as the regular price at which the supermarket had previously offered the products for sale.
Woolworths and Coles both deny the allegations of misleading consumers.
Iconic beer brand Tooheys achieved the fastest growth in brand value, doubling to $452m, driven by its no-alcohol offering and eco-friendly packaging.
Kmart private label Anko achieved a 66 per cent growth in its retail brand value to $3.2bn.
Qantas’s brand value also doubled over the year to $1.1bn off the back of Jetstar’s budget focus arm.
Globally, Apple is the most valuable brand in the world, worth $US574.5bn ($A916.71bn), followed by Microsoft and Google at $US461bn ($A735.60bn) and $413bn ($A659bn) respectively.
Originally published as Woolworths, Coles value slumps following price gouging allegations
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