Are Coles and Woolworths taking advantage of the cost-of-living crisis? See why they got slapped with the Shonky award
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As inflation soars and interest rates rise in Australia, many families are feeling the pinch of the cost-of-living crisis.
Consumer champion CHOICE is now questioning whether the country's two biggest supermarkets—Coles and Woolworths—are taking unfair advantage of hard-pressed shoppers.
CHOICE, a not-for-profit consumer advocacy group, has been recognising the worst products and services each year through its annual Shonky awards since 2006.
It aims to name (and sometimes, shame) the companies that have disappointed consumers or not provided value for money.
This year, Coles and Woolworths received the dubious honour. While both supermarkets have seen billions in profits, many shoppers have said they aren't doing enough to keep food costs low.
‘While Coles and Woolies have been promoting how they’re supposedly helping with the cost of living, in the background, they’ve been banking huge profits,’ Alan Kirkland, CHOICE Chief Executive, explained.
A CHOICE survey in September found that 60 per cent of shoppers believed the supermarkets are 'making a lot of money from price hikes'.
The same survey also revealed that there is a growing concern among Australians about the rising prices of food items.
It turns out that 88 per cent of the respondents are worried about the cost of food and groceries, which is the highest percentage reported so far. It is noteworthy that this percentage has been steadily increasing since January 2021, when it was only 56 per cent.
Woolworths Group, which owns the largest supermarket chain in Australia, reported a $1.62 billion profit in August. Meanwhile, Coles Group, the owner of the country's second-largest supermarket chain, announced an annual profit of $1.1 billion.
Mr Kirkland said: ‘Coles and Woolies putting their own interests, and the interests of their profits, ahead of the interests of their customers. They are well and truly deserving of a Shonky award.’
A Woolworths spokesperson shared that the company is ‘acutely aware’ of the effects of the cost-of-living crisis on Australian families.
They explained that they have several initiatives for their customers.
‘We know there’s more to do, and that’s why we’ll continue to invest in the future, whether that’s support for our team, creating jobs, investing in communities and paying fair prices to the thousands of businesses (both large and small) we work with across the country,’ they shared.
On the other hand, a Coles spokesperson stated that they reduced the price of hundreds of products in the past few months.
‘This ensures we can continue to employ more than 120,000 Australians, partner with more than 8,000 suppliers and farmers, support local communities and continue to invest in value for the millions of customers who visit our stores every week.’
Last year, the consumer group awarded the Shonky Award to Qantas after the airline had been accused of a series of failings, including unusable credits, delayed flights, lost baggage, and lengthy call wait times.
CHOICE Travel Expert Jodi Bird remarked last year: ‘If there was ever a company that appeared to deliberately be going out of its way to win a Shonky award, it’s Qantas.’
You can read more about last year’s Shonky Awards here.
If you want to know other Shonky Awards winners for 2023, you can visit CHOICE’s website here.
You can watch ABC News’ coverage of the Shonky Awards here:
What do you think about this year’s Shonky Awards, members? Do you agree with CHOICE’s selection? Share your thoughts in the comments below!
Consumer champion CHOICE is now questioning whether the country's two biggest supermarkets—Coles and Woolworths—are taking unfair advantage of hard-pressed shoppers.
CHOICE, a not-for-profit consumer advocacy group, has been recognising the worst products and services each year through its annual Shonky awards since 2006.
It aims to name (and sometimes, shame) the companies that have disappointed consumers or not provided value for money.
Coles and Woolworths were awarded the Shonky Award for 2023. Credit: CHOICE
This year, Coles and Woolworths received the dubious honour. While both supermarkets have seen billions in profits, many shoppers have said they aren't doing enough to keep food costs low.
‘While Coles and Woolies have been promoting how they’re supposedly helping with the cost of living, in the background, they’ve been banking huge profits,’ Alan Kirkland, CHOICE Chief Executive, explained.
A CHOICE survey in September found that 60 per cent of shoppers believed the supermarkets are 'making a lot of money from price hikes'.
The same survey also revealed that there is a growing concern among Australians about the rising prices of food items.
It turns out that 88 per cent of the respondents are worried about the cost of food and groceries, which is the highest percentage reported so far. It is noteworthy that this percentage has been steadily increasing since January 2021, when it was only 56 per cent.
Woolworths Group, which owns the largest supermarket chain in Australia, reported a $1.62 billion profit in August. Meanwhile, Coles Group, the owner of the country's second-largest supermarket chain, announced an annual profit of $1.1 billion.
Mr Kirkland said: ‘Coles and Woolies putting their own interests, and the interests of their profits, ahead of the interests of their customers. They are well and truly deserving of a Shonky award.’
A Woolworths spokesperson shared that the company is ‘acutely aware’ of the effects of the cost-of-living crisis on Australian families.
They explained that they have several initiatives for their customers.
‘We know there’s more to do, and that’s why we’ll continue to invest in the future, whether that’s support for our team, creating jobs, investing in communities and paying fair prices to the thousands of businesses (both large and small) we work with across the country,’ they shared.
On the other hand, a Coles spokesperson stated that they reduced the price of hundreds of products in the past few months.
‘This ensures we can continue to employ more than 120,000 Australians, partner with more than 8,000 suppliers and farmers, support local communities and continue to invest in value for the millions of customers who visit our stores every week.’
Last year, the consumer group awarded the Shonky Award to Qantas after the airline had been accused of a series of failings, including unusable credits, delayed flights, lost baggage, and lengthy call wait times.
CHOICE Travel Expert Jodi Bird remarked last year: ‘If there was ever a company that appeared to deliberately be going out of its way to win a Shonky award, it’s Qantas.’
You can read more about last year’s Shonky Awards here.
If you want to know other Shonky Awards winners for 2023, you can visit CHOICE’s website here.
You can watch ABC News’ coverage of the Shonky Awards here:
What do you think about this year’s Shonky Awards, members? Do you agree with CHOICE’s selection? Share your thoughts in the comments below!
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