Woolies shoppers swapping out red meat and treating themselves to ‘affordable luxuries’

Australians are struggling with increasing cost-of-living pressures, meaning their shopping habits are changing.

Woolworths customers are shopping for affordable luxuries, swapping out red-meat and returning to brick-and-mortar stores.

The major supermarket announced its half-year earnings on Wednesday with a heavy emphasis on customers looking for value during their weekly shop.

Woolworths Group managing director and chief executive Brad Banducci said the supermarket had well and truly entered a “post-Covid operating environment”, with more shoppers returning to stores and shopping on weekends.

“Customers have gone back to shopping the way they used to,” Mr Banducci told reporters on Wednesday morning.

Shoppers are turning to poultry to get their protein fix as red meat prices stay high. Picture: iStock

Despite this, digital traffic is trending up, with app users accounting for half of this, particularly the Everyday Rewards app that links to the supermarket’s loyalty system.

The number of shoppers who have their groceries delivered in bulk to their home once a week is growing.

More people are also using use e-commerce once a week to get a large delivery to their home.

Customers are returning to stores to do their weekly shop, but online shopping continues to grow. Picture: NCA NewsWire/Tertius Pickard

Customers are still buying affordable luxuries such as cheese and ice cream. Picture: NCA NewsWire / David Crosling

Customers are still splurging on “affordable luxuries” such as exclusive cheese brands and ice creams, especially when they appear at “special” prices.

There is a small movement towards customers eating at home more, but across the board customers are seeking out value for money.

Protein prices have begun to stabilise but red meat is still expensive, so shoppers are trending towards more affordable alternatives, with many opting to purchase poultry instead.

Perishable products like dairy are still at inflated prices. Picture: NCA NewsWire/Tertius Pickard

“Prices are coming down overall but there is still a long way to go,” Mr Banducci said.

“It’s crucial that we support customers as they start to spend less.”

Perishable products, including milk, yoghurt and other dairy, are still at inflated prices due to pressure on dairy farmers.

“What we’re clear about in our business is if there is great value, our customers will find it,” Mr Banducci said.

Odd bunch fruit and veg sales have increased 10 per cent. Picture: NCA NewsWire / David Crosling

Another encouraging trend is the move towards the supermarket’s “odd bunch” range of odd-shaped fruit and vegetables that Woolworths has committed to selling at 20 per cent less than conventional-shaped products.

Sales of the range have increased 10 per cent.

Interestingly, beauty sales are trading up significantly for the first time in Woolworths stores.

The popularity of MCoBeauty – exclusive to Woolworths and Big W – has soared at the same time one of the brand’s products has gone viral on TikTok as a dupe for the Dior lip oil.