Coles takes on Costco in bulk buys price war

Buying in bulk has just become more competitive, with leading supermarkets going to war. SEE THE DEALS

Anooska Tucker-Evans

2 min read

August 21, 2024 - 8:09AM

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Coles and Costco are fighting it out to be the cheapest bulk budget retailer, offering savings of up to 80 per cent off for customers who are prepared to buy in large quantities.

Coles took on the world’s third largest retailer last week, releasing a new range of bulk buys running from washing powder to popcorn and protein bars.

It said the decision came after a recent survey of 15,000 Australians which revealed nearly 30 per cent were buying more in bulk or bigger pack sizes than ever before to help ease cost-of-living pressures.

“The range has performed better than expectations and customer feedback has been positive so far,” said Coles General Manager Health and Home Deb Galle.

Ms Galle said customers were increasingly using unit sizing price comparisons on products to make their budgets stretch further.

“The large-pack-size products allow Coles to provide more attractive unit pricing on products that customers want,” she said, revealing the new bulk packs were on some of the supermarket’s most popular products.

The super-sized packs line up with much of Costco’s offering, with both retailers now selling Bhuja Original Mix 1kg packs for $13 and Coca-Cola Multi Pack Mini Cans for $22.

Natasha Pedlow and Andrew Hamilton from Caboolture shopping at Costco North Lakes with daughters Zailee, 3, and Shylah, 1. Picture: Lachie Millard

However in a Courier-Mail comparison of shelf prices, it was found that Costco beat Coles on other items in its new bulk range, offering cheaper unit prices such as Duracell AA batteries for 50c each, compared to 62c at Coles, Poppin Microwave Triple Butter for 94c a pack in contrast to $1.11; Pedigree Dry Dog Food for $2.60 versus $3.10 and Morning Fresh Lemon liquid for $4.72/l as opposed to $5.18/l at Coles.

While prices at Costco, which declined to contribute to our story, were largely cheaper, the global retailer also charges an annual membership fee, starting at $65, which Coles does not. The pack sizes were also significantly larger for many items at Costco, requiring more storage – something retail expert Gary Mortimer said was one of the biggest deterrents for people buying in bulk.

“While it’s great to buy 48 rolls of toilet paper and 10 kilos of laundry detergent, you also have to store that at some point, certainly in smaller apartments and modern day homes, there seems to be less storage,” Mr Mortimer said.

He also warned consumers of other issues to consider when buying in bulk.

“If you buy something in bulk and it perishes or goes out of date before you can actually consume the product that’s not very economical,” he said.

Mr Mortimer said customers could also find products for great prices using supermarket weekly 40 and 50 per cent off deals, with apps like Frugl, WiseList and Half Price taking the hard work out of comparing catalogue specials, collating them in one spot.

The Coles bulk range will only be available for another three weeks as part of a limited promotion.

When contacted by The Courier-Mail, Woolworths would not be drawn on whether it would offer a similar bulk scheme, however, a spokeswoman said its sister company Big W provided many bulk items daily including Quilton toilet paper 45-packs which retail for the same price as Costco, and Morning Fresh three packs which are on par with the new deal from Coles.