Former Woolworths CEO says supermarket is not competitive on price during ACCC hearing

BY Neil Griffiths

November 19, 2024 9:38

Former Woolworths CEO says supermarket is not competitive on price during ACCC hearing

As Australia’s two biggest supermarket chains battle a brand crisis on the back of a newly-launched class action suit, the former CEO of Woolworths claims that the company has not been competitive when it comes to pricing.

Per the AFR, Brad Banducci and now-CEO, Amanda Bardwell, fronted an Australian Competition and Consumer Commission (ACCC) public hearing on Monday regarding the supermarket sector.

Bardwell and Banducci – who stepped down as CEO in September after serving in the head role from August 2021 – argued that Woolworths’ competitive spirit is about more than price.

Banducci said that while price is an important factor, customers are also concerned about freshness of products and their longevity.

“So, price [is a] starting point, but it’s not sufficient,” he said.

It comes after the ACCC commenced separate proceedings against both Woolworths and Coles in September “for allegedly breaching the Australian Consumer Law by misleading consumers through discount pricing claims on hundreds of common supermarket products”.

“The ACCC’s allegations relate to products sold by each of Woolworths and Coles at regular long-term prices which remained the same, excluding short-term specials, for at least six months and in many cases for at least a year,” the ACCC said in a statement.

(L-R): Banducci and Bardwell

“The products were then subject to price rises of at least 15 per cent for brief periods, before being placed in Woolworths’ ‘Prices Dropped’ promotion and Coles’ ‘Down Down’ promotion, at prices lower than during the price spike but higher than, or the same as, the regular price that applied before the price spike.”

It’s alleged that the misconduct involved 266 products for Woolworths over 20 months, and 245 products for Coles over 15 months.

And just last week, a class action suit was filed against both chains, with Gerard Malouf & Partners predicting a range of payouts to Australians, from $200 to over $1,300.

“This action focuses solely on winning back the difference between the advertised ‘discounted’ prices and the real prices for hundreds of commonly purchased products at Coles between February 2022 and May 2023, and at Woolworths between September 2021 and May 2023,” the law firm explained in a statement given to Mumbrella.

GMP Law will be seeking refunds for affected consumers.