Who’s Cheaper – Coles Or Woolies?
We all know that ALDI’s trouncing its rivals in the “we’re the cheapest” stakes, but when it comes to Coles or Woolies do we believe their “prices are down” or “cheap cheap” campaigns in telling us who actually offers the cheapest groceries?
And the winner is….? Coles according to a report released this morning.
Macquarie Bank has released its MICAWBER report that is an acronym for the rather long-winded Macquarie Index of Coles And Woolworths Basket of Everyday Requirements.
Basically the report compares the cost of shopping baskets for the two grocery giants and it found that Coles was officially cheaper than its arch rival particularly for things like fresh produce such as meat, fruit and veg.
“In recent weeks Coles in-store prices have tracked to a high of ~3.5 per cent cheaper than Woolworths on a weighted basis,” the report said. “For the week ending 27th November, Coles was ~1.5 per cent cheaper.
“Fresh is the primary driver of the price differential, which includes fruit, vegetables, meat and dairy related categories.”
Both grocery chains have spent heavily in recent times telling consumers about their lower prices, primarily in the face of ALDI’s aggressive expansion.
Woolies has particularly struggled to get its message out there. It’s “cheap cheap” campaign in the first half of the year was universally derided which saw the company’s CMO, Tony Phillips, fall on his sword in May.
In fact, it’s been a torrid 2015 for Woolworths. It copped massive social backlash for its failed ANZAC Day commemoration, it had to pull a Michelle Bridges video last month, it got embroiled in the Beau Ryan affair fiasco and it was trounced in a recent customer survey for price and freshness.
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