Is your loyalty to Coles and Woolworths wavering? You are not alone!
- Replies 13
Have you found your loyalty to certain supermarkets, especially the big chains like Coles and Woolworths, a bit on the rocks lately? Well, here's a bit of news—you're not alone!
The ongoing cost-of-living crisis is making it harder and harder for households to treat money lightly. Our budgets have shrunk while our expenses have only grown. As frustrating and stressful as this is, it’s comforting to know we are not alone.
Recent evidence has revealed that a collective shift is happening among shoppers, leading to a decline in customer loyalty to the major supermarkets. What are the main culprits causing these changes in our habits? The pressures that the cost-of-living crisis has inadvertently unleashed.
Aussie shoppers are becoming increasingly strategic with their spending habits, visiting a variety of supermarkets, grocers, and food sellers to maximise their savings.
![shutterstock_2023622432.jpg shutterstock_2023622432.jpg](https://seniorsdiscountclub.com.au/data/attachments/26/26318-58e7fe1d4434706bb15c40f7fb97efe7.jpg)
Talking to a parliamentary inquiry into economic dynamism, competition, and business formation, representatives from Coles and Woolworths admitted noticing this change in their customer behaviour. Remember when we, as loyal customers, would head to our favourite store for a big, weekly grocery shopping trip? Well, not anymore.
According to Vittoria Bon, Coles’ Government and Industry Relations Manager, customers are becoming more selective about where they shop. The once-a-week big grocery shop is losing its appeal. 'People might shop around daily or every second day rather than one weekly shop. People do pay attention to when there are specials which are released at different points in time,' she reported during her conversation with the committee.
From the other giant supermarket group, Woolworths, the picture painted is not rosy either. Woolworths can no longer enjoy high customer loyalty scores. Paul Harker, Woolworths Group’s Chief Commercial Officer mentioned that less than 10% of base customers spend 90% of their weekly grocery shopping at Woolworths.
Additional research from Woolworths revealed that 17% of its shoppers would make a purchase from another specialty retailer 'within the hour' after shopping with the supermarket. This suggests that customer loyalty is becoming a thing of the past.
In regard to the reasons for these changes, the rise in dairy prices due to farmgate milk prices and the impact of external global factors such as Russia’s invasion of Ukraine affecting product categories that rely on grain and oil were listed.
On top of these economic issues, the Coles/Woolworths duopoly has been called out for potentially stifling competition. Metcash Food’s Chief Operating Officer, Grant Ramage—the force behind IGA and Foodland networks—called for stronger competition laws.
Ramage believes there's a need for a 'test for acquisitions' before allowing a major retailer to be introduced, ensuring no automatic market domination. He argued that this would increase competition and positively influence factors such as price.
'Supermarkets don’t just compete on price you pay at the checkout but the frequency of the offers and the types of promotions they run, the range of products they sell, and the quality of service delivered in the store,' he said, providing a fuller picture of the arena beyond prices alone.
We recently wrote about Mr Ramage’s belief that Coles and Woolies might be price gouging on microwavable/ready-made meals.
Reflecting on these changes, it seems pertinent that, as a community, we find more ways to make the most of our money. This means exploring upcoming catalogues, constantly comparing prices, and watching out for promotional sales. It also involves digging deeper into the origins of our goods to get a feel of their true value.
In the battle between convenience and economy, the latter is gaining new ground. It's time to bring out our magnifying glasses and become more discerning consumers and—dare we say it—detectives!
No matter what, we at the SDC are here with you every step of the way. Whatever changes may come, we'll keep working and writing to bring you the most helpful, timely, and relevant advice. After all, we all have to eat! So next time you head out for your groceries or go online, remember—good things often come to those who 'hunt'!
The ongoing cost-of-living crisis is making it harder and harder for households to treat money lightly. Our budgets have shrunk while our expenses have only grown. As frustrating and stressful as this is, it’s comforting to know we are not alone.
Recent evidence has revealed that a collective shift is happening among shoppers, leading to a decline in customer loyalty to the major supermarkets. What are the main culprits causing these changes in our habits? The pressures that the cost-of-living crisis has inadvertently unleashed.
Aussie shoppers are becoming increasingly strategic with their spending habits, visiting a variety of supermarkets, grocers, and food sellers to maximise their savings.
![shutterstock_2023622432.jpg shutterstock_2023622432.jpg](https://seniorsdiscountclub.com.au/data/attachments/26/26318-58e7fe1d4434706bb15c40f7fb97efe7.jpg)
With grocery bills skyrocketing, Australian consumers are - understandably - becoming less 'loyal' to supermarkets. Source: Shutterstock
Talking to a parliamentary inquiry into economic dynamism, competition, and business formation, representatives from Coles and Woolworths admitted noticing this change in their customer behaviour. Remember when we, as loyal customers, would head to our favourite store for a big, weekly grocery shopping trip? Well, not anymore.
According to Vittoria Bon, Coles’ Government and Industry Relations Manager, customers are becoming more selective about where they shop. The once-a-week big grocery shop is losing its appeal. 'People might shop around daily or every second day rather than one weekly shop. People do pay attention to when there are specials which are released at different points in time,' she reported during her conversation with the committee.
From the other giant supermarket group, Woolworths, the picture painted is not rosy either. Woolworths can no longer enjoy high customer loyalty scores. Paul Harker, Woolworths Group’s Chief Commercial Officer mentioned that less than 10% of base customers spend 90% of their weekly grocery shopping at Woolworths.
Additional research from Woolworths revealed that 17% of its shoppers would make a purchase from another specialty retailer 'within the hour' after shopping with the supermarket. This suggests that customer loyalty is becoming a thing of the past.
In regard to the reasons for these changes, the rise in dairy prices due to farmgate milk prices and the impact of external global factors such as Russia’s invasion of Ukraine affecting product categories that rely on grain and oil were listed.
On top of these economic issues, the Coles/Woolworths duopoly has been called out for potentially stifling competition. Metcash Food’s Chief Operating Officer, Grant Ramage—the force behind IGA and Foodland networks—called for stronger competition laws.
Ramage believes there's a need for a 'test for acquisitions' before allowing a major retailer to be introduced, ensuring no automatic market domination. He argued that this would increase competition and positively influence factors such as price.
'Supermarkets don’t just compete on price you pay at the checkout but the frequency of the offers and the types of promotions they run, the range of products they sell, and the quality of service delivered in the store,' he said, providing a fuller picture of the arena beyond prices alone.
We recently wrote about Mr Ramage’s belief that Coles and Woolies might be price gouging on microwavable/ready-made meals.
Key Takeaways
- Rising cost-of-living pressures are causing customers to diversify their shopping, visiting more supermarkets, grocers and food sellers to capitalise on savings.
- Coles and Woolworths representatives note that customers are becoming more selective in their shopping habits, shifting from weekly grocery shops to more frequent, targeted shops.
- Woolworths reveal a 'very low loyalty grocery score', with less than 10% of their base customers spending 90% of their weekly grocery shopping at Woolworths.
- Metcash Food chief operating officer Grant Ramage suggests stronger competition laws are needed to stop major retailers from gaining excessive market dominance and encourages the application of a 'test for acquisitions' before the introduction of a major retailer.
In the battle between convenience and economy, the latter is gaining new ground. It's time to bring out our magnifying glasses and become more discerning consumers and—dare we say it—detectives!
No matter what, we at the SDC are here with you every step of the way. Whatever changes may come, we'll keep working and writing to bring you the most helpful, timely, and relevant advice. After all, we all have to eat! So next time you head out for your groceries or go online, remember—good things often come to those who 'hunt'!
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