Woolworths conversions spark price concerns among locals
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If you’ve been feeling the pinch when it comes to rising everyday grocery costs, you’re not alone. The cost of food has skyrocketed in the last couple of years, and it’s only getting worse when it comes to meals and fresh produce.
The struggle has become pertinent for almost everyone in Australia, especially those living off a fixed, often limited income and with the pressure of the recent cost of living crisis.
Woolworths Metro stores in Sydney’s inner west are promising no extra price hikes or changes when it comes to their range of products and ready-to-go meals.
Residents and even local officials raised their concerns about the plan to transform the well-established Balmain and Alexandria Woolworths stores into Metro outlets, which they fear would worsen the cost-of-living crunch bearing down on residents.
Sydney Lord Mayor Clover Moore even reached out to Woolworths' CEO, Brad Banducci, to reconsider their plans to convert the Fountain Street store in Alexandria and the Darling Street store in Balmain.
Mayor Moore echoed her constituents’ concern that such changes could potentially affect local residents by leading to increased prices.
But according to Sydney-based news source The Sun-Herald, there are differences in pricing between some Metro and full-sized Woolworths stores on a number of select items.
Toilet paper, dairy products, ready-made meals, notebooks, and eggs were all found to be pricier at Metro stores than the larger-sized Woolies throughout Sydney’s inner city.
At Woolworths locations in Alexandria, Mascot, and Redfern, a Quilton three-ply eight-pack of toilet paper is priced at $8.60. However, at Metros in Erskineville, Park Sydney, Green Square, and North Sydney, it's listed at $9.05, while the Redfern Station Metro charges $9.90.
Customers also encounter slightly higher costs at Metro stores. For example, a 495 ml bottle of Fairy dishwashing liquid costs an extra 40 cents, a 765-gram pack of NutriGrain rings up at 35 cents more, and Dairy Farmers two-litre milk bottles and Pace Farm free-range jumbo eggs come with increases of 25 cents and 20 cents, respectively.
For Woolworths-branded full cream two-litre milk, you'll find it priced at $3.10 at Woolworths stores in Alexandria, Mascot, and Redfern. However, at Metro stores in Erskineville, Park Sydney, Green Square, and North Sydney, it's marked at $3.30. The Redfern Station Metro charges a slightly higher price of $3.45 for the same product.
When pressed on the issue, a representative from Woolworths Metro acknowledged that the price of their own branded milk was due to an error on their part, and was rectified quickly. But there wasn’t much that could be said to justify the price disparities between the two store types.
The Metro representative explained that there’s no ‘one-size-fits-all’ approach for their Metro stores, and prices may vary depending on their size and location. For example, stores with higher operating costs to run tend to be pricier.
'Metro pricing remains very competitive against local competition, whether that be other convenience players in the inner city or supermarkets in suburban locations of our neighbourhood stores,’ the spokesperson said.
‘There’s no change to the pricing approach as a result of the conversion in this or other supermarkets that have recently joined Metro with ongoing alignment to supermarket pricing as these stores fit the larger store size for Metro.’
Another factor would be on the customer demographic. Convenience stores provide convenience and have wider variety of products, which leads to a higher price point.
On the other hand, supermarkets have different customer demographics and they offer lower prices that will appeal more customers.
The proportion of Metro-branded stores has doubled in the last five years, making up 8.2 per cent of all Woolworths stores in Australia compared with 3.2 per cent in 2018.
At the end of the day, Members, it's about being informed and making smart shopping decisions. It pays to be aware and compare prices for identical items between them.
Have you encountered this type of situation when grocery shopping? Share your experience in the comments below!
The struggle has become pertinent for almost everyone in Australia, especially those living off a fixed, often limited income and with the pressure of the recent cost of living crisis.
Woolworths Metro stores in Sydney’s inner west are promising no extra price hikes or changes when it comes to their range of products and ready-to-go meals.
Residents and even local officials raised their concerns about the plan to transform the well-established Balmain and Alexandria Woolworths stores into Metro outlets, which they fear would worsen the cost-of-living crunch bearing down on residents.
Sydney Lord Mayor Clover Moore even reached out to Woolworths' CEO, Brad Banducci, to reconsider their plans to convert the Fountain Street store in Alexandria and the Darling Street store in Balmain.
Mayor Moore echoed her constituents’ concern that such changes could potentially affect local residents by leading to increased prices.
There are still price differences on some products between other Metro and full-sized Woolworths stores. Credit: Pexels
But according to Sydney-based news source The Sun-Herald, there are differences in pricing between some Metro and full-sized Woolworths stores on a number of select items.
Toilet paper, dairy products, ready-made meals, notebooks, and eggs were all found to be pricier at Metro stores than the larger-sized Woolies throughout Sydney’s inner city.
At Woolworths locations in Alexandria, Mascot, and Redfern, a Quilton three-ply eight-pack of toilet paper is priced at $8.60. However, at Metros in Erskineville, Park Sydney, Green Square, and North Sydney, it's listed at $9.05, while the Redfern Station Metro charges $9.90.
Customers also encounter slightly higher costs at Metro stores. For example, a 495 ml bottle of Fairy dishwashing liquid costs an extra 40 cents, a 765-gram pack of NutriGrain rings up at 35 cents more, and Dairy Farmers two-litre milk bottles and Pace Farm free-range jumbo eggs come with increases of 25 cents and 20 cents, respectively.
For Woolworths-branded full cream two-litre milk, you'll find it priced at $3.10 at Woolworths stores in Alexandria, Mascot, and Redfern. However, at Metro stores in Erskineville, Park Sydney, Green Square, and North Sydney, it's marked at $3.30. The Redfern Station Metro charges a slightly higher price of $3.45 for the same product.
When pressed on the issue, a representative from Woolworths Metro acknowledged that the price of their own branded milk was due to an error on their part, and was rectified quickly. But there wasn’t much that could be said to justify the price disparities between the two store types.
The Metro representative explained that there’s no ‘one-size-fits-all’ approach for their Metro stores, and prices may vary depending on their size and location. For example, stores with higher operating costs to run tend to be pricier.
'Metro pricing remains very competitive against local competition, whether that be other convenience players in the inner city or supermarkets in suburban locations of our neighbourhood stores,’ the spokesperson said.
‘There’s no change to the pricing approach as a result of the conversion in this or other supermarkets that have recently joined Metro with ongoing alignment to supermarket pricing as these stores fit the larger store size for Metro.’
Woolworths Metro claims that the price difference on products depend on the size and location. Credit: Granville Place
Another factor would be on the customer demographic. Convenience stores provide convenience and have wider variety of products, which leads to a higher price point.
On the other hand, supermarkets have different customer demographics and they offer lower prices that will appeal more customers.
The proportion of Metro-branded stores has doubled in the last five years, making up 8.2 per cent of all Woolworths stores in Australia compared with 3.2 per cent in 2018.
At the end of the day, Members, it's about being informed and making smart shopping decisions. It pays to be aware and compare prices for identical items between them.
Have you encountered this type of situation when grocery shopping? Share your experience in the comments below!
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