The scent of a good deal, that intoxicating aroma of savings…
but what if it’s just a clever illusion?
Recent rumblings from Aussie shoppers suggest that Coles and Woolworths, the titans of the supermarket world, might be tempting us with discounts that are less “bargain” and more “bamboozle.” Let’s dive into the claims, the counter-arguments, and what it all means for your wallet.
The Allegations: Inflated Prices Before the Drop?
Online forums have been buzzing with accusations.
Customers are claiming that both Coles and Woolworths are artificially inflating the “original” prices on items before marking them down, making the clearance price seem far more attractive than it actually is.
Is this just the grumbling of dissatisfied shoppers, or is there something more to it?
One frustrated customer shared their experience: “These chocolates have been $24 forever.
Last week, Woolworths raised the price to $29, an increase of 22 per cent!
Now, Woolies is trying to position $24 as a clearance price.
We were told this shouldn’t happen.”
Another chimed in, questioning the marked-down price of Lindt Easter eggs at Coles: “When were these ever $40?” These kinds of anecdotes are starting to paint a picture of potentially misleading practices.
Even more concerning, an alleged Woolworths employee claimed a coworker was instructed to replace a $5 price tag on coffee capsules with an $11 one.
“My coworker was putting up new tickets and came to show me…
she said doing tickets makes her so angry, and this is exactly why,” the woman wrote.
The ACCC Steps In: Legal Action and Scrutiny
These allegations aren’t entirely new.
In September 2024, the Australian Competition and Consumer Commission (ACCC) initiated legal action against both Coles and Woolworths, alleging deceptive pricing practices.
The ACCC accused the retailers of artificially inflating prices on hundreds of everyday items before advertising them as discounted under campaigns like “Coles Down” and “Woolworths Prices Dropped.” The core issue?
Raising prices by at least 15 per cent for a short period before offering a discount, potentially misleading consumers about genuine savings.
It’s a bold claim, and the stakes are high.
During a Federal Court hearing in Melbourne in October 2024, representatives from both supermarkets denied the allegations, attributing price increases to supplier costs and market conditions.
They maintained that their pricing strategies were transparent and in line with industry standards.
However, the ACCC remains firm, arguing that such practices erode consumer trust and calling for substantial penalties to deter future misconduct.
This isn’t just about the price of a chocolate bar; it’s about the integrity of the entire retail system.
Supermarket’s Response: Blaming the Supply Chain and “Human Error”
In response to the recent online allegations, Coles and Woolworths have offered their explanations.
A Coles spokesperson pointed out that the $40 recommended retail price for the Easter eggs was accurate, attributing price increases in general to cocoa shortages and higher global commodity prices.
“We are working closely with our suppliers to offer competitive prices for our customers this Easter,” they stated.
Fair enough, right?
Woolworths similarly cited the wholesale cost of goods when questioned about the increased price of coffee.
They also acknowledged the price of the clearance chocolates was incorrect, suggesting it may have been an isolated incident or, potentially, due to the chocolates nearing their expiration date.
A simple mistake, or a symptom of a bigger problem?
It’s hard to say for sure.
The Honey Trap: Small Producers Squeezed?
But the pricing allegations extend beyond chocolates and coffee.
The case of Adleys Honey, a small honey packing business on the New South Wales south coast, highlights a different kind of pressure.
According to owner Orori Rutherford, Coles is cutting smaller brands to increase profits and forcing them to absorb price reductions.
Could this be a David vs.
Goliath scenario playing out on supermarket shelves?
Coles plans to remove Adleys Honey’s 400g squeeze bottle from shelves as part of a range simplification effort.
Rutherford claims that Coles wants Adleys to absorb the full difference in price on their 500g jars, so the supermarket can maintain its existing profit margin of 41.1%.
This would leave Adleys with a significantly reduced profit margin – potentially unsustainable.
“It’s not going to be Kelloggs, and it’s not going to be Heinz,” Rutherford says.
“It’s going to be the small guys that people don’t notice, but they’re the ones that make the overall difference to the economy.”
Here’s the kicker: Coles reportedly told Adleys that the 400g squeeze bottle was being removed because customers preferred the 500g jar.
However, Rutherford presented evidence of poor layout issues in Coles stores, with different Adleys products placed on separate shelves, potentially hindering sales of the 400g bottle.
The ACCC is also investigating concerns raised by suppliers about their reliance on major supermarkets, including difficulties in negotiating prices and instances where prices fall below the cost of production.
It seems the honey situation might be just one drop in a larger sea of concerns.
Coles Responds to Honey Allegations
A Coles spokesperson said it removed the Adleys 400g squeeze bottle because customers preferred to buy the 500g jar.
“We consistently review our range,” they say.
“This is a necessary practice for any retailer to make best use of our limited shelf space for our customers.”
Contrasting Fortunes: Profits Tell a Story
Meanwhile, the supermarket giants are reporting contrasting profit margins.
Woolworths reported a 20.6 per cent decline in net profit, amounting to $739 million for the first half of the financial year, citing industrial action and a shift towards value-oriented shopping.
Coles Group, on the other hand, reported a net profit after tax of $576 million, a slight, three per cent decrease from the previous year.
Here’s a table summarizing the profit performance:
| Company | Net Profit (First Half of Financial Year) | Change from Previous Year |
|---|---|---|
| Woolworths | $739 million | -20.6% |
| Coles Group | $576 million | -3% |
Do these numbers reflect genuine market pressures, or are they influenced by the alleged pricing tactics?
It’s a question worth pondering.
Recipe Corner: Honey-Glazed Chicken (a nod to Adleys!)
Speaking of honey, let’s lighten the mood with a delicious and simple recipe using (hopefully ethically sourced!) honey:
Honey-Glazed Chicken
Ingredients:
- 4 boneless, skinless chicken breasts
- 1/4 cup Adleys Honey (or your favorite local brand!)
- 2 tablespoons soy sauce
- 1 tablespoon olive oil
- 1 clove garlic, minced
- Salt and pepper to taste
Instructions:
- Preheat oven to 375°F (190°C).
- In a small bowl, whisk together honey, soy sauce, olive oil, and minced garlic.
- Season chicken breasts with salt and pepper.
- Place chicken breasts in a baking dish.
- Pour honey mixture over the chicken, ensuring each piece is well coated.
- Bake for 20-25 minutes, or until chicken is cooked through.
- Serve with your favorite sides – roasted vegetables, rice, or a fresh salad.
Enjoy the sweet and savory flavors of this simple dish.
Feel free to experiment with different herbs and spices to customize the flavor profile – a pinch of red pepper flakes adds a delightful kick!
The Road Ahead: ACCC Report and Consumer Awareness
The ACCC’s final report on the supermarket sector, submitted to the government on February 28, 2025, aims to address market concentration and enhance competition.
The Federal Treasurer is expected to reveal the findings in the coming days.
Will this report shed light on these pricing allegations and lead to meaningful changes in the supermarket industry?
We’ll have to wait and see.
So, What Can You Do?
As consumers, we aren’t powerless.
Here are a few tips to stay savvy at the checkout:
- Compare prices: Don’t just assume the “discounted” price is the best deal.
Check prices at different stores or use online comparison tools. - Read the fine print: Pay attention to unit prices (price per gram, per ounce, etc.) to compare similar products accurately.
- Support local producers: When possible, choose smaller brands and local producers.
This helps support the local economy and encourages diversity in the marketplace. - Stay informed: Keep up with news and reports about supermarket pricing practices.
Knowledge is power!
Ultimately, the responsibility lies with both the retailers and the consumers.
Supermarkets need to be transparent and honest in their pricing, and consumers need to be vigilant and informed in their purchasing decisions.
The question remains: will the outcome of the ACCC report change pricing in the future?
What are your thoughts on these allegations?
Have you noticed similar pricing practices at your local supermarket?
Share your experiences in the comments below!
Beyond the Supermarket Aisles: Exploring Alternative Shopping Options
While Coles and Woolworths dominate the Australian grocery landscape, exploring alternative shopping options can not only save you money but also provide access to higher-quality, locally sourced produce.
Think beyond the big two!
Farmers Markets: A Sensory Feast
Imagine strolling through a bustling market, the air thick with the aroma of freshly baked bread, ripe fruits, and fragrant herbs.
Farmers markets offer a direct connection to the people who grow our food.
You can chat with farmers, learn about their practices, and sample their wares before you buy.
It’s a sensory experience that supermarkets simply can’t replicate.
Benefits of Farmers Markets:
- Fresher Produce: Often picked just hours before the market, fruits and vegetables are at their peak flavor and nutritional value.
- Support Local Farmers: Your money directly supports the growers in your community, helping to sustain local agriculture.
- Unique Products: Discover artisanal cheeses, handcrafted jams, and other specialty items you won’t find in supermarkets.
- Reduced Food Miles: Buying locally reduces the environmental impact associated with transporting food over long distances.
Butcher Shops and Fishmongers: Quality Matters
While supermarkets offer convenience, specialized butcher shops and fishmongers often provide higher-quality meats and seafood, with greater expertise and personalized service.
They can offer advice on cooking methods, portion sizes, and even suggest recipes.
Tips for Shopping at Butcher Shops and Fishmongers:
- Ask Questions: Don’t be afraid to ask about the source of the meat or seafood, how it was raised or caught, and the best way to prepare it.
- Look for Freshness: Fish should have bright, clear eyes and a fresh, sea-like smell.
Meat should be vibrant in color and have a firm texture. - Buy in Season: Seafood is often cheaper and more flavorful when it’s in season.
- Consider Value: While prices might seem higher at first, the superior quality often translates to a better eating experience and less waste.
Asian Grocers: A World of Flavor Awaits
Asian grocers are treasure troves of unique ingredients, from exotic spices and sauces to fresh noodles and vegetables.
Exploring these stores can open up a whole new world of culinary possibilities.
Must-Have Items from Asian Grocers:
- Soy Sauce: A staple of Asian cuisine, soy sauce adds umami and depth to a variety of dishes.
- Rice Noodles: Versatile and gluten-free, rice noodles are perfect for stir-fries, soups, and salads.
- Chili Oil: Add a fiery kick to your meals with chili oil, a flavorful condiment that’s both spicy and savory.
- Fresh Herbs: Discover aromatic herbs like cilantro, mint, and Thai basil, which add freshness and complexity to Asian dishes.
Recipe Corner: Stir-Fried Rice Noodles with Bok Choy and Garlic
Inspired by the vibrant flavors of Asian cuisine, here’s a quick and easy recipe that you can whip up using ingredients from your local Asian grocer (and maybe even some Adleys Honey from your pantry!):
Stir-Fried Rice Noodles with Bok Choy and Garlic
Ingredients:
- 8 oz rice noodles
- 1 tablespoon vegetable oil
- 2 cloves garlic, minced
- 1 head bok choy, chopped
- 1/4 cup soy sauce
- 1 tablespoon Adleys Honey (or your favorite local brand!)
- 1 teaspoon sesame oil
- Optional: red pepper flakes, for heat
Instructions:
- Cook rice noodles according to package directions.
Drain and set aside. - Heat vegetable oil in a wok or large skillet over medium-high heat.
- Add minced garlic and stir-fry for 30 seconds, until fragrant.
- Add chopped bok choy and stir-fry for 2-3 minutes, until wilted.
- Add cooked rice noodles, soy sauce, honey, and sesame oil.
Stir-fry for another 2-3 minutes, until noodles are heated through and evenly coated with sauce. - If desired, sprinkle with red pepper flakes for a touch of heat.
- Serve immediately and enjoy!
This dish is easily customizable – feel free to add other vegetables like carrots, mushrooms, or bell peppers.
You can also add protein like tofu, chicken, or shrimp.
Get creative and make it your own!
Frequently Asked Questions About Supermarket Pricing
What is deceptive pricing?
Deceptive pricing is when retailers mislead consumers about the true value of a product by artificially inflating the original price before offering a discount.
What is the ACCC and what is its role?
The Australian Competition and Consumer Commission (ACCC) is a government agency that promotes competition and fair trading in the market, protecting consumer rights.
What can consumers do to protect themselves from deceptive pricing?
Consumers can compare prices across different stores, read the fine print, support local producers, and stay informed about supermarket pricing practices.
The Price is Right?
Navigating the Supermarket Landscape
The allegations of deceptive pricing and unfair practices raise significant concerns about transparency and fairness within the Australian supermarket industry.
As the ACCC’s report looms, and consumer awareness grows, the pressure is on Coles and Woolworths to demonstrate genuine commitment to ethical pricing and support for local producers.
Only time will tell if lasting changes will be implemented, ultimately benefiting both consumers and the broader economy.
