"Consumer advocacy group CHOICE has called out supermarket giants Coles and Woolworths for "cashing in during a cost-of-living crisis", as part of its 18th annual Shonky Awards."
The awards "recognise the very worst products and services" found by CHOICE in the past year.
Q. How do you get lower prices at Coles or Woolworths?
A. Build an Aldi nearby.
Aldi is no better with woolies and coles store branded product prices. They price match each other.
For example, if woolies or coles has their own branded version and if Aldi has the same product, Aldi will make it the same price as woolies and coles.
Thickened cream: 4.50
Morello cherries: 3.70
Peaches can: 3.20
Passionfruit can: 1.10
Buttermilk: 2.50
Lactose free milk, long life: 1.60
I noticed this in the last year cause I buy the some store own brand over and over again and noticed Aldi just not even trying to be cheaper than the woolies/coles branded stuff.
Aldi just not even trying to be cheaper than the woolies/coles branded stuff.
True, they rely on many people 'blindly believing' that Aldi are cheaper.
Aldi is definitely cheaper but they are likely taking the same profit margins. The cheaper prices come from the budget way of running their stores.
Or is it Coles and woolies matching Aldi's price rather than Aldi making it the same?
Yeah nah…. It's aldi. Morello cherries are new to aldi, I buy them monthly at Coles or Woolies past 2 years. When I saw aldi had them approx 2 months ago, they priced it the same as Coles and Woolies brand.
Officeworks say it like they're doing you a service. "You don't have to shop around, we've done that so just come to us."
Fruit and veg at my local Aldi are often 1c lower than Coles and Woolworths. This is technically cheaper, but hella dodgy.
Woolies advertised some fresh fruit on sale in their latest catalog. Locally its even cheaper than that, but same price (less1c) as Aldi.
To me that indicates locally Woolies is price matching Aldi not the other way round.
They're basically the same price
shop directly from farmers.
You an make many things yourself
No need to purchase them Ie stock cubes. herb bombs. mayo, mustard and the list goes on.
thats crazy
Just thinking about this last night.
Woolies had a profit of 1.97 Billion (2021 FY); there are 9.96 million households in Australia, so if every household shopped exclusively there, 1.97 billion/ 9.96 million = $197.79per household per annum going to profit.
Saying half the people shop at woolies, that tis $98.90 per annum.
divided by 52 = $1.90 per week.
Is that really price gouging?
Half is probably high when you consider Aldi, IGA and others, but the math still comes out at a relatively low household contribution to profit.
If half the people shop there they needed to make $395.58 per household. I somewhat agree with your point though, they can price gouge whatever they think they can get away with and I'll just do my shopping at Aldi and independent grocers and fruit shops.
Looking at their sales though and it's only $87 per household per week, and we pay Woolworths $3.80 for the pleasure of them existing. Not to pay for staff or buildings or anything else, just to let them exist and funnel that money to shareholders.
That's after tax too, it jumps up to about $5 a week per household. And we pay something similar for the pleasure of Coles existing too.
Not to go full communist and say we should nationalise the supermarkets, but when we're calculating how much everyone in the country contributes to the profit of one organisation thing have gotten a little whacky.
Operating profit margin is about 6% at Woolies, significantly higher than supermarket chains overseas like Walmart (2.78%) or Tesco (~1%). If Woolies took the same cut of sales as profit as the largest supermarket chains in the US or UK, a consumer be looking at paying $2 to $5 less per $100 of groceries you buy. I think there's a fair case for saying our supermarkets are taking advantage of the duopoly structure, instead of really competing on price.
Jbhifi, Harvey Norman, Qantas.
All equally as guilty.
Probably Bunnings is the only one that didn't shaft people.
Probably Bunnings is the only one that didn't shaft people.
Made a bigger profit than Woolworths, to the tune of $600,000,000
That's just their standard shafting though, they didn't step it up during covid. However, I recall that every contact tracing list that came out had the people visiting Bunnings in the last 7 days. Maybe Bunnings was in on the pLanDemIc all along?!
Many of the Bunnings items are one off so much harder to tell when price has increased.
Bought milk last week $1.20 Today $1.25, easy to recall the price increase.
By Box of screws $10 two years ago, hard to compare from memory, when its $11 now
@RockyRaccoon: Go to a nuts and bolts specialist. Half the price of Bunnings I find, either buy how many you actually want or by box.
Probably Bunnings is the only one that didn't shaft people.
and it basically has a monopoly
Bunnings can be ridiculously overpriced in various areas of the store, they mostly rely on having a monopoly and convenience.
Also their sausage sizzle prices are insane now.
Aren't the sausage sizzles run independently, with proceeds going to charity? I'm not sure Bunnings dictate the price of that.
They actually dictate almost everything about it.
Maybe but a lot of these bigger companies have some questionable negotiating tatics with suppliers. Ive seen first hand and its easy to say suppliers dont have to supply to them but doesnt work that way. If 90 % of your goods are going to say Bunnings and they say we will stop buying from you unless you give us a further discount of 20% they basically have you over a barrel.
Suppliers have to ensure they have multiple businesses to sell to so they dont end up in this situation.
Whilst I have no particular affinity towards Woolworths and Coles - this is misleading from Choice as it fails contextualise the profits in terms of their revenue.
A good analogy from this article
He used the $1.06 billion profit posted by Coles as an example.
"They needed to actually generate $41 billion in sales to get there," he said.
"That would be like your kids spending the entire weekend on the footpath selling lemonade at a lemonade stand, coming in on a Sunday afternoon going 'Mum, I made $41'," he said.
"And you immediately take off them $40 to pay for their cost of goods, their table, their signage, and their lemons, and possibly even their juicer, and they're left with $1.
"And with that dollar, they then need to invest that into buying better signage and a better table and more lemons for next weekend."
Coles and Woolies win Choice Magazine Shonky Award
Yep… 64% price increase a week ago…
https://pricehipster.com/product/s4gGCVjt6lAaAD311vqlTA~BkG5…
Will probably drop the price in another week or two back to normal and claim 40% off !!!!!!!!!!!!!!!!
What would we do without Choice.
;)
I am so sick of people blaming Coles and Woolies for their cost of living issues.
Yes, prices have gone up but prices have always gone up.
Let's look at some of the numbers. Coles and Woolworths made profits of $2.6b combined last financial year. There is roughly 26 million Australians.
If we say to Coles and Woolworths you are NOT allowed to make ANY profit last year.
Every Australian would be $100 better off. $100 for the whole year. Wow. And this is over estimated. Coles and Woolworths have other revenue sources from their financial and mobile service offerings, so not all the $2.6B is from their retail arm.
Every YT or TikTok video I see have people bitching about groceries at Colesworth, like Finish tablets for $50, buy it when it is half price FFS.
Most of the reason behind cost of living issues are the people own choices.
Don't buy for convenience like sliced or grated cheese or packaged salads. Buy block cheese or the actual vegetable and wash it yourself!
Don't buy non seasonal stuff. Buying Watermelon in winter and complaining is stupid.
Don't buy prepared frozen meals.
People seem to think companies are there to provide for you with no return. Companies are allowed to make money, in fact that is what the market wants, one of Coles or Woolworths actually got panned for less than expected results.
Has Covid wiped off some logic?
If you feel aggrieved don't buy.
I don't give a F$%k how much the prices have gone up, simply if it doesn't represent value I don't buy it.
Choices abound.
Don't buy.
Buy a cheaper alternative.
Wait till its on special, especially washing detergent, it is on special every other week between ColesWorth.
Buy from another shop like Reject Shop.
Take personal responsibility for make adult choices.
If you feel aggrieved don't buy.
I didn't
Wait till its on special
These don't ever go on special at Coles.
These don't ever go on special at Coles.
The 2Kg variety is half price now with a similar per unit price.
https://www.coles.com.au/product/omo-ultimate-laundry-deterg…
The 5KG is on special at Woolies FFS.
https://www.woolworths.com.au/shop/productdetails/430629/omo…
Greetings traveller.
Welcome to planet earth. I see you're new here. We don't do personal responsibility. That's for 'others'.
Choice is just trying to get on news.com.au, so they can sell some more shonky memberships.
From 2021 to now here are some percentages of items that went up from Coles
Coles branded thickened cream - up 33%
Bulla thickened cream - up 25%
SPC canned peaches - up 17%
Cadbury milk chocolate block - up 37%
YoPro Yogurt - Up 20%
Fennel Bunch - Up 43%
Baby peas canned - Up 44%
I am picking out random products but the truth is this is rapid price increase, it's not steady. While I agree price increase is healthy for the economy, rapid price increase isn't.
yes people can buy the cheaper alternative but it doesn't give the excuse the cheaper alternative is highly inflated as well….
I love baking with Thickened Cream, I stick with the home brand ones and buy the larger bottle for a cheaper unit price.
Peas buy a kilo frozen it is cheaper.
Peaches, Chocolate, Yoghurt are all in the discretionary spending bucket. If it's too expensive don't buy.
This sounds harsh but most of the times I hear bitching about prices people aren't prepared to adjust their ways, just want to keep using the same products or brands.
AGREE !
I need coles and woolworths to continuously grow profits as it's good for my (and probably most others') super and investment portfolios
The issue I have is them removing cheaper options and replacing them with much higher ones . Still have a big range but now the average price is higher.
It's not that prices have gone up, its that they haven't gone up what would seem in line with inflation, they've gone up massive amounts. A lot of stuff is up at least 25%, and also a fair amount at 40% or more.
I would assume that these massive increases would have caused some people to shift their spend elsewhere also. I know I have where possible. I'm buying less from them but I'm still spending more.
We need "Pack n Save" in Australia.
We also need Sainsbury’s, Tesco, Morrison’s, Asda, - and yes, even Waitrose!! Not to mention Argos and B&Q☺️…. Still pining for an Aldi in Tassie😞.
Believe whatever Choice say?
You're dreaming.
Many years ago when I was in the white goods industry, Choice ran a test on refrigerators. Two identical fridges from the same production line but with different brand names on them were in the test. Choice recommended one but gave the other a bad review. Personally I wouldn't have purchased either.
The 'cashing in on the cost of living crisis' rhetoric goes way to far….
Woollies increased their profits by 4.8% which is LESS than (CPI) inflation, so, in reality, their profit margins DECREASED in real value.
The REAL blame is the government's fiscal policy during COVID (it had bipartisan support)… this meant the RBA (for the first time) was forced to employ $300b of quantitative easing (ie, money printing - 12k per citizen)
What we are seeing here is the payment for a debt WE as a society incurred from the government's COVID response… It may take decades for us to reach the 2019 levels of (general) prosperity again. I also say 'government' but the public sentiment at the time forced the government's hand into lockdowns etc… so it's really our fault… I mean… in a democracy, if things go wrong it's the collective fault of the (majority of) people.
Woollies increased their profits by 4.8% which is LESS than (CPI) inflation, so, in reality, their profit margins DECREASED in real value.
Yes thank you Woolies was the one that was panned by the market.
The REAL blame is the government's fiscal policy during COVID (it had bipartisan support)… this meant the RBA (for the first time) was forced to employ $300b of quantitative easing (ie, money printing - 12k per citizen)
Absolutely, this does not get enough attention. The COVID handouts were incredible :
Then at the state level there were also construction / renovation stimuli AND injections of funds into people's utilities accounts.
Then they raised the minimum wage.
It simply went too far.
The reason it doesn't enough light shed on it is because people know their snouts were in the trough as well. So…collectively everyone is to blame.
I'm glad we agree - the only thing I disagree with is the construction stimulus - I can only see that helping the current situation and I think that was a generally good idea.
the only thing I disagree with is the construction stimulus - I can only see that helping the current situation and I think that was a generally good idea.
In theory it was a good idea.
During COVID construction stalled, but it was equally because of the lack of materials and labour than people ceasing to build / reno.
What has happened is the stimulus was too much, so much so that some builders stopped taking orders and prices just shot up. Trades shot up. Brickies are now demanding $3 a brick. All this making it harder for people to build.
Too many ppl period. Living and breeding beyond their means and beyond the planets capacity to cope. Nature can't grow to please capitalism.We are cutting it down and digging it up, and using it as a dump as our potable water reserves rapidly die or disappear.
This comment is anti-human. I vehemently disagree with the fundamental premise and the conclusions drawn from it.
Humanity has many flaws but we also have such beauty and a near-unlimited potential for good. I'm optimistic the answer to overcome the setbacks you describe lie in increasing human flourishing (in the distant future, in a galactic sense) not decreasing it. We're already making massive strides in the right direction and the story of the last 200 years (since the industrial revolution) has resulted so much human flourishing the the amelioration of suffering it's actually unbelievable… Australian society/culture is at the cutting edge of the current human progress… yet we have so much more room for growth.
IDC
You are blind to reality
@The Wololo Wombat: LOL. I'm not the wonder candy coating the misery that we have created,inflicted on others and every other species in our desire to control nature . The same nature that underpins our survival.
You must live a very sheltered life, or never get out, or filter your inward observations to suit your dream state.
@Protractor: I've travelled to over 70 countries and lived and worked all over the globe. I am not ignorant.
@The Wololo Wombat: Then you're either in denial, or an active Christian missionary or have a fiscal interest in more bums on seats
@Protractor: No, I believe the conclusions you are drawing are reasonable, but they start with a flawed premise in how you view human nature/the human condition.
@The Wololo Wombat: I believe the conclusions you are drawing are fanciful, because they start with a flawed premise in how you view human nature/the human condition.
@Protractor: I'd be happy to hear your thoughts on this and consider them, then, if you'd like, I could try and explain my thoughts and hear your critique.
@Protractor: No worries mate, sometimes when I get tired I start writing like I think I’m ghandi or Marcus Aurelius or something. Dunno why
@Protractor: But wait, what's this?
All the Proto-Alt-Rightists were hosing down all these climate/population/environmental concerns with the default lip service Technology will provide the solutions or
I have faith that humans will harness technology to prevent catastrophe, as we have always done
Where net-zero energy production was concerned, technology was the covert term for nuclear fusion or small-scale fission. We have seen that exposed in the past 12 months.
Where overpopulation is concerned, technology is displayed in live tests of newest military hardware.
We now find ourselves on the cusp of a self-imposed existential crisis with AI. Suddenly all the techno-champions are silently wetting themselves, and rightly so.
What will humanity do? Pour fuel on the inferno and let technology fix it!
@Speckled Jim: All the "harnessing" goes into weaponry and bribing govts to protect the filthy rich who have no loyalty to borders or their own people.Humans are just customers,cannon fodder,scapegoats and other means to an end for the elites who drain them as a resource.And nature gets drained to feed the plebs. AI is probs a blessing in disguise which is why Musk,the rich and the elites are panicking
Humans are more important than the planet, mate. Stop with your silly "too many humans" comment on different threads.
BTW you used 'capitalism' wrong
Stop with your 'stop' demands. I choose reality
ED+ Humans will make great fossil fuel, over lesser period than it took for the first round.. Maybe aliens can use it more wisely than we screwed the planet.
So I'm guessing you don't have any children and have no intentions to either? The next question would be if you think there are too many people, what makes you think you have any more right than anyone else to exist?
Such a shallow comeback.
What makes you think an unlimited number of ppl who don't exist should exist when we KNOW it's beyond sustainable already. I've done my bit. Justify the alternative.
Which version of "It's OK little Johnny, the shit that's happening will pass and all the rainbows will return soon" do you employ?
@Protractor: Not a shallow comeback at all; I'm genuinely curious as to what makes you think your existence is worth any more than anyone else's
If you think there are too many people, there really is only one solution, an incredibly dark one. Hence my curiosity as to how you choose who is worthy and who is not
If you are unable to follow your argument through to their logical end, then the only conclusion is your comments are vacuous, or perhaps, shallow
@RMBC: "what makes you think your existence is worth any more than anyone else's" They are your words framed to justify your denial of reality.
Which part of our irreversible end point approaching impact on the planet do you claim is imaginary,shallow or vacuous?
Breeding less is not a dark solution. Stop playing the euthanasia fear card.Even a farmer knows when the farm is overstocked.
The Spud Shed (a family owned WA company long known for selling at lower prices) just announced a TRIPLING of their net profit to $5.4m. TRIPLING
Shouldn't we be labelling them greedy sods and expecting them to lower prices? They are making like bandits right?
If not, why not?
Why is it OK for one company to triple their profits and not for Woolies to announce a Meager 5% ?
Why do Australians get triggered by profit?
How much of that is based on expanding their base VS charging more per product?
I'm sure Colesworth price increases have driven a lot more business to them. As I mentioned in a comment above, I've tried to shift my spend away from them where possible and Spudshed has picked up some of that. I have noticed some items copped an increase (mainly dairy) but most are pretty stable or increases have been modest, not 40% and higher like the others.
The decision makers in Colesworth would have looked to deliver the same profit or more as per the last FY. I'll bet with wages up, transport, energy costs etc up, they just looked to plug the losses where they could recoup the easiest, aka gouging. ( some price rises may have been genuine ones but it looks better when everything rises similarly ,% wise.Also Coles and Woolies cooperate (collude?) to make the gouge seem 'ethical'.
Robbing Peter to pay Paul, is really another way (in commerce) of saying robbing customers to pay shareholders. Greed drives it all. Capitalism is built on it, and not altruism or equity or community cohesion, or even 'doing the right (moral or ethical) thing
Maybe you should open your own supermarket and undercut them!
You are kidding
Coles and Woolies have the best workers all wrapped up.
How could you compete!
I find it interesting that Vanguard's Australian Shares ETF has holdings in both Coles (#20) and Woolworths (#10). I bet ETF investors are cheering for the profits.
Its funny watching people blame storefronts while suppliers/distributors are laughing at us because they are essentially invisible to all the bad press and are 100% responsible for prices.
Good. Will it change anything? No.