Trend taking over Aussie shoppers amid cost-of-living pressures
Australians are finding new ways to save at the checkout, with more hunting around for the cheapest prices.
Coles says Australians are finding new ways to save at the checkout, with more hunting around for the cheapest prices.
Coles chief executive Leah Weckert said shoppers were “cross shopping” in a bid to cut costs, with the average shopper now visiting three to four retailers to fill their shopping basket as they look to save money due to cost-of-living pressures.
Ms Weckert said as shoppers sought out value to stretch their family budgets, 95 per cent of those surveyed by the supermarket shop at three or more retailers every week for their food and grocery needs.
Coles said the company’s first-quarter sales were up 2.9 per cent to $10.55bn, with its flagship supermarket arm posting a 2.4 per cent lift in sales to $9.51bn.
The supermarket said sales in the quarter continued to be impacted by the subdued economic environment, with consumers constraining their discretionary spending.
Just 24 hours after Woolworths announced profit warnings, Coles said supermarket prices were falling.
Excluding tobacco, sales revenue increased by 4.9 per cent and comparable sales growth was 2.4 per cent.
Much of the weakness in sales came through for liquor, with sales flat in store and falling 1.9 per cent online.
“Cost of living remains a challenge for many of our customers, and we are focused on helping them find value in our stores through weekly specials, value campaigns, Flybuys and exclusive brands,” Ms Weckert said.
“Pleasingly for customers, meat, dairy, health beauty and homecare categories were all in deflation during the quarter.”
Coles said overall supermarket inflation, excluding tobacco, declined to 1 per cent, remaining well below historic levels.
Rival Woolworths also issued a first-half sales warning, stating its sales were up 3.8 per cent, again on heavily discounted items.
Shares in Woolworths fell 6 per cent on the announcement.
Like Woolworths, Coles is facing allegations of fake discounting.
The ACCC alleges that Coles made false or misleading representations to consumers about the prices of 245 products between February 2022 and May 2023.
During Wednesday’s quarterly inflation statement, Australian Bureau of Statistics head of prices statistics Michelle Marquardt said the increased cost of fresh produce was also impacting the CPI, with fruit prices 4.7 per cent higher year-on-year.
“Fruit and vegetable prices rose this quarter, as unfavourable growing conditions drove higher prices for grapes, strawberries, blueberries, tomatoes and capsicums. This was the highest quarterly rise for fruit and vegetables since 2016,” Ms Marquardt said.
Coles said it would be focusing on affordability during the upcoming festive season, which is traditionally a busier time for supermarkets.
“In preparation for the upcoming festive season we have launched many new products to make entertaining at home more delicious, easy and affordable,” Ms Weckert said
“In-store execution, availability and quality continue to be priorities to improve customer experience.”
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