‘Down down’ and ‘cheap cheap’ are gone gone: why supermarkets are moving away from price
With both Coles and Woolies moving away from price-based marketing, Gary Mortimer and Louise Grimmer investigate why now is the time for a strategic shift towards community and sustainability in this crossposting from The Conversation.
On January 26, 2011, Coles fired the first shot in what would soon be dubbed the “supermarket price wars” by reducing the price of its own-brand milk to A$1 per litre. Woolworths fired back, triggering seven years of intense price competition.
But now Coles has waved the white flag, indicating a move away from price-based marketing, to a focus on other attributes, such as sustainability, local produce and community.
Research shows if price is the main selling point, shopper loyalty decreases and customers become more conscious of price. Price wars are also costly for retailers.
Perhaps if Coles actually had more staff manning the checkouts, plus not having the 12 items or less person also manning the front desk, they might do better. In South Australia the Foodland stores all seem to be able to have more checkouts open, plus 2 or 3 express checkouts.
.