Fresh twist in Coles, Woolworths rivalry as Aussies seeking ‘better value' declare new winner

Yahoo

02-04-2025

Coles has edged out Woolworths for the first time in years to become the most preferred supermarket for Australian shoppers. The margin was tight, only 1 per cent, however, the Leah Weckert-led company has overtaken the Fresh Food People.
UBS research found 38 per cent of customers listed Coles as their main supermarket, with Woolies on 37 per cent. That's a significant shift from Q3 2023 when Woolworths led the supermarket pack with 45 per cent of the vote.
'We feel that Coles have proved more effective at providing the value that consumers seek in this current environment, and have been able to do this with fewer, better promotions,' UBS analyst Shaun Cousins said.
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'That approach is also one that has not caused dramatic damage to their margins.
"This is the contrast to Woolworths, which has been late to deliver value in the way the customers want it."
Aldi came in third, with 16 per cent saying the German retailer was their main supermarket, and IGA followed in fourth with just 5 per cent.Investment bank UBS spoke with 1,000 Aussie shoppers to get this data and what was interesting was to see the difference between online and in-person shopping.
While Coles now rules the roost for people who do their grocery shop in a physical store, Woolies still holds the crown for those who do it from the comfort of their homes, with 38 per cent of the vote.
Coles trails in second on 32 per cent, "other" was third on 14 per cent and Amazon was fourth on 12 per cent.
Woolies and Coles were neck and neck at the previous survey at the end of Q4 last year at 35 and 33 per cent, respectively.
Even though Woolies has been overtaken on preference, it's clear that shoppers still spend more with them.
Recent data from the consumer watchdog found Woolworths had 38 per cent of national sales, with Coles on 29 per cent, and Aldi on 9 per cent.
The result comes as the supermarkets hit back against Anthony Albanese's proposal to outlaw price gouging.
The Prime Minister promised there would be a law similar to the European Union and some US states that would impose big penalties on companies if they abused their market dominance.
If Labor won the May 3 election, the rule would be introduced by the end of the year.
Coles and Woolworths were the first to retaliate against the idea.
'What's needed are measures that tackle the real factors driving higher grocery prices, which are rising costs such as energy, fuel, labour, insurance, production, freight and distribution," a Coles spokesperson said.
Meanwhile, Woolies said a recent lengthy investigation by the consumer watchdog found neither of the major supermarkets had been price-gouging shoppers.
Metcash, a wholesale distribution company that supplies IGA supermarkets, has also sounded the alarm against the plan. CEO Doug Jones said Albanese is using "inflammatory" language to win over voters.
'I think it must be remembered that in all of the inquiries and hearings, we've not heard any evidence and any facts that would support that there is price gouging," Jones told The Australian.
"And no one seems to be very clear what price gouging actually is, which is frustrating, because it seems to be a sort of an inflammatory catchphrase that's helpful for politicians.
'To dumb it down to allegations of price gouging does an ­incredible disservice and demonstrates a lack of understanding.'
CEO of independent supermarket chain Ritchies, Fred Harrison, also called the Prime Minister's comments "inflammatory" and said his shops only make a "modest" return on investment.Sign in to access your portfolio