Coles, Woolworths respond after Aussies accuse supermarkets of 'same old tricks' for easter

Yahoo

01-03-2025

Coles and Woolworths have hit back at fresh claims they are engaging in sneaky tactics, after shoppers accused both retailers of inflating prices on tags before subsequently reducing them — claiming they are deceptively advertising items as "clearance" or discounted.
Online this week, several Australians raised concerns both supermarkets may be inflating prices on their specials tags. They claim the original prices listed on certain products were deliberately inaccurate, in an effort to make the clearance price seem like a better deal.
The allegations are similar to those made by the Australian Competition and Consumer Commission (ACCC) last year when Coles and Woolworths were accused of raising prices before promoting price reductions.
"Woolies and Coles [are] up to the same old tricks," a frustrated customer wrote on social media this week.
"These chocolates have been $24 forever. Last week, [they] 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."
A similarly upset customer of Coles questioned the $20 price tag of a box of Lindt Easter eggs, marked down from $40, asking "when were these ever $40?".
Somebody else who claimed to be a Woolworths employee said her co-worker was asked to replace a $5 price tag on a box of coffee capsules with an $11 one. "My co-worker 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.
In September 2024, the 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, only to later advertise them as discounted under campaigns like Coles' "Down Down" and Woolworths' "Prices Dropped."
This strategy allegedly involved raising product prices by at least 15 per cent for a short period before offering a "discount" that matched or exceeded the original price, misleading consumers about genuine savings.
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 contended that their pricing strategies were transparent and in line with industry standards. The ACCC, however, maintained that such practices erode consumer trust and called for substantial penalties to deter future misconduct.
A final report on the supermarket sector was scheduled for submission to the government yesterday, February 28, aiming to address market concentration and enhance competition. The Federal Treasurer is expected to reveal the findings of the report in the coming days.
In the online thread this week, numerous examples were present, including instances at other retailers as well. Yahoo News questioned both Woolworths and Coles over the allegations levelled at them.
A Coles spokesperson told us that with regard to the Easter eggs, the product is seasonal (not available all year round). They said the $40 recommended retail price (RRP) is accurate, and encouraged direct contact with the supplier for additional information.
Coles recognised the price of chocolate had increased due to cocoa shortages, leading to higher global commodity prices. "We are working closely with our suppliers to offer competitive prices for our customers this Easter," a spokesperson told Yahoo.
"Ingredients play a crucial role in determining prices at the checkout. We know there are significant global challenges in the supply of cocoa beans, which have impacted production costs across the industry for many suppliers."
As for Woolworths, it also cited the wholesale cost of goods when it came to the increased price of the box of coffee. "The industry is managing higher commodity prices of green coffee beans and cocoa, and we are working with our suppliers to ensure we have a range of products in these categories to suit all budgets," a spokesperson told us.
However it did acknowledge the price of the "clearance" chocolates was incorrect, which it suggested may have been an isolated incident, due to human error. Or, potentially due to the fact the chocolates were going out of date.
Woolworths increased the price of the Guyliana Seashells 250g pack in February, 2025 following a supplier cost request. In December, a Woolworths catalogue priced the same pack at $24.
Meanwhile, both supermarket announced on Thursday their latest profit margins — each experiencing contrasting outcomes.
Woolworths reported a 20.6 per cent decline in net profit, amounting to $739 million for the first half of the financial year. This downturn is in part attributed to a 17-day industrial action in December in addition to what it said was a major shift in consumer behaviour towards more value-oriented shopping.
Chief executive Amanda Bardwell admitted the decline was "a difficult and disappointing result", citing the "financial pressures" facing Australians, coupled with the fact customers are "cross-shopping significantly more".
As a result, the supermarket heavyweight announced plans to reduce costs by $400 million. It said it has cut its interim dividend by 17 per cent to 39 cents per share.
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. Despite the decline, the results met market expectations, bolstered by strong holiday sales and benefiting from disruptions faced by Woolworths due to industrial action.
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