Shopping at ColesWorths? What’s the real cost?

Marketing Management Blog T1 2015

Fintan Magee

It’s a race to the bottom; to be the cheapest. In Woolworths parlance it’s “Cheap Cheap” whilst over at Coles aging rock-stars are pointing “Down Down” at their genitals with large red hands. The two dominant players in the Australian supermarket industry are engaged in a price war and most of us won’t bemoan the fact that both have decreased their prices over the last three years – Woolworths by 11 per cent and Coles by 6 per cent.

coles v woolcoles v woo

However, there is a cost to be borne in what most would view as healthy competition. Consider the plight of their channel partners; farmers, manufacturers, processors and distributors. Coles and Woolworths are the 19th and 15th biggest selling retailers in the world and, between them, command a staggering 74% market share of our supermarket/grocery sector. They both wield incredible power over their channel partners with a number…

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