Woolworths Cuts Prices, Sales Dip
Woolworths cuts prices to compete with Coles, boosting margins via media and loyalty programs. However, food sales growth lags behind Coles at 1.5%.
March 4, 2024
Simon Rowles
Founder, CEO
Woolworths Group Competitive Strategy
In an effort to surpass its competitor, Coles Group, Woolworths Group significantly reduced prices in 2016. This strategic move aimed to gain a competitive edge in the highly contested market.
Enhancements in Profit Margins
Woolworths has seen an improvement in profit margins, thanks to the rapid growth of its retail media business, its various subscription services, and long-term investments in customer loyalty programs.
Sales Growth Comparison
Despite these efforts, Woolworths' food sales growth, which stands at 1.5%, has fallen behind Coles, which reported a substantial increase in supermarket sales of 5.8%.
