Your grocery shop is about to change—here’s why shoppers are concerned
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Supermarkets are constantly changing the way they stock their shelves, but not every decision sits well with shoppers.
A shift in strategy by Australia’s two biggest supermarket chains is raising eyebrows—and could have major consequences for the brands you know and trust.
What’s behind this move, and what does it mean for your weekly grocery shop?
Australia’s major supermarkets have been making changes to their shelves, but not all shoppers are thrilled with the shift.
Coles and Woolworths had been expanding their own-brand product ranges, a move that retail experts warned could alienate customers and impact local brands.
Coles revealed it had cut non-own brand stock by up to 10 per cent in an effort to compete with ALDI, while Woolworths increased shelf space for its own-label products.
Flinders University retail expert Professor Roberta Crouch cautioned against the strategy, highlighting the frustration it could cause shoppers.
‘There's nothing worse than going to a particular store because you know that they've got your toothpaste, or that olive oil that you really like, and you can walk down the aisle and it's not there anymore,’ she shared.
She added that many customers disliked switching supermarkets.
Kmart had taken a similar approach in 2019, shifting to its in-house Anko brand for about 85 per cent of its stock.
The retailer’s popularity had soared, but Crouch warned Coles and Woolworths against adopting the same model too aggressively.
She predicted that home-brand products could increase by another 10–15 per cent over the coming years, potentially pushing out well-known brands.
‘[Coles and Woolworths] shouldn't be tempted to flood their shelves with their own products to the detriment of those brands that shoppers come in for as well,’ she said.
‘It's a fine line.’
Supermarkets had favoured home-brand products because they controlled the entire production process, from manufacturing to packaging.
These items were often up to 40 per cent cheaper than their branded counterparts, making them appealing amid rising living costs.
ALDI had built its success on this strategy, stocking around 1,800 products—far fewer than the 20,000 to 25,000 found at Coles and Woolworths.
Coles and Woolworths had also diversified their private-label offerings, with some products appearing budget-friendly while others mimicked premium brands with stylish packaging.
Consumer group CHOICE noted that some shoppers might not realise they were buying home-brand products.
While the savings were attractive, the expansion of own-brand ranges meant some beloved products could disappear.
Tori Rutherford, who ran the Adleys Honey brand, shared that small brands would suffer the most.
‘It’s not going to be Kellogg’s, and it’s not going to be Heinz,’ she said.
‘It’s going to be the small [brands] that people don’t notice, but they’re the ones that make the overall difference to the Australian economy.’
Shoppers who couldn’t find their favourite brands might be forced to try alternatives or look elsewhere.
Crouch admitted she had turned to Amazon for certain grocery items after struggling to find them in stores.
Finder research showed she wasn’t alone, with a third of shoppers now splitting their grocery shop across multiple stores.
Personal finance expert and Yahoo Finance contributor Sarah Megginson said grocery shopping had evolved into a strategic cost-cutting exercise.
‘Grocery shopping is no longer a simple task you do each week–it's become a strategic exercise in cost-cutting for many Australians,’ she said.
Despite concerns, Coles and Woolworths denied they were pushing out branded products in favour of their own.
Coles CEO Leah Weckert stated that two-thirds of the supermarket’s sales still came from proprietary products.
‘Two-thirds of our sales are still proprietary products, they're a very important part of our offer, and we know that's why many customers come and do their shop with us,’ she told a consumer watchdog inquiry.
Coles also claimed that underperforming products—whether home-brand or not—were regularly reviewed and removed if necessary.
Woolworths and Coles stocked around 6,000 home-brand products each, with Woolworths CEO Amanda Bardwell acknowledging the shift in customer preferences.
‘Customers are switching from brands to own brand. We're seeing a shift in terms of customers increasingly looking for value in multiple different ways,’ she said.
However, Woolworths declined to confirm whether more small-name brands would be removed.
CHOICE urged regulators to investigate the impact of home-brand expansion on competition and pricing.
The consumer watchdog had already been scrutinising the supermarket sector, with CHOICE pointing to a similar inquiry in New Zealand.
The 2022 investigation found that while private-label products initially increased affordability and CHOICE, they risked pushing out supplier-branded goods and driving up prices over time.
With more home-brand products taking over supermarket shelves, will you stick to your favourite brands or make the switch?
Let us know your thoughts in the comments.
A shift in strategy by Australia’s two biggest supermarket chains is raising eyebrows—and could have major consequences for the brands you know and trust.
What’s behind this move, and what does it mean for your weekly grocery shop?
Australia’s major supermarkets have been making changes to their shelves, but not all shoppers are thrilled with the shift.
Coles and Woolworths had been expanding their own-brand product ranges, a move that retail experts warned could alienate customers and impact local brands.
Coles revealed it had cut non-own brand stock by up to 10 per cent in an effort to compete with ALDI, while Woolworths increased shelf space for its own-label products.
Flinders University retail expert Professor Roberta Crouch cautioned against the strategy, highlighting the frustration it could cause shoppers.
‘There's nothing worse than going to a particular store because you know that they've got your toothpaste, or that olive oil that you really like, and you can walk down the aisle and it's not there anymore,’ she shared.
She added that many customers disliked switching supermarkets.
Kmart had taken a similar approach in 2019, shifting to its in-house Anko brand for about 85 per cent of its stock.
The retailer’s popularity had soared, but Crouch warned Coles and Woolworths against adopting the same model too aggressively.
She predicted that home-brand products could increase by another 10–15 per cent over the coming years, potentially pushing out well-known brands.
‘[Coles and Woolworths] shouldn't be tempted to flood their shelves with their own products to the detriment of those brands that shoppers come in for as well,’ she said.
‘It's a fine line.’
Supermarkets had favoured home-brand products because they controlled the entire production process, from manufacturing to packaging.
These items were often up to 40 per cent cheaper than their branded counterparts, making them appealing amid rising living costs.
ALDI had built its success on this strategy, stocking around 1,800 products—far fewer than the 20,000 to 25,000 found at Coles and Woolworths.
Coles and Woolworths had also diversified their private-label offerings, with some products appearing budget-friendly while others mimicked premium brands with stylish packaging.
Consumer group CHOICE noted that some shoppers might not realise they were buying home-brand products.
While the savings were attractive, the expansion of own-brand ranges meant some beloved products could disappear.
Tori Rutherford, who ran the Adleys Honey brand, shared that small brands would suffer the most.
‘It’s not going to be Kellogg’s, and it’s not going to be Heinz,’ she said.
‘It’s going to be the small [brands] that people don’t notice, but they’re the ones that make the overall difference to the Australian economy.’
Shoppers who couldn’t find their favourite brands might be forced to try alternatives or look elsewhere.
Crouch admitted she had turned to Amazon for certain grocery items after struggling to find them in stores.
Finder research showed she wasn’t alone, with a third of shoppers now splitting their grocery shop across multiple stores.
Personal finance expert and Yahoo Finance contributor Sarah Megginson said grocery shopping had evolved into a strategic cost-cutting exercise.
‘Grocery shopping is no longer a simple task you do each week–it's become a strategic exercise in cost-cutting for many Australians,’ she said.
Despite concerns, Coles and Woolworths denied they were pushing out branded products in favour of their own.
Coles CEO Leah Weckert stated that two-thirds of the supermarket’s sales still came from proprietary products.
‘Two-thirds of our sales are still proprietary products, they're a very important part of our offer, and we know that's why many customers come and do their shop with us,’ she told a consumer watchdog inquiry.
Coles also claimed that underperforming products—whether home-brand or not—were regularly reviewed and removed if necessary.
Woolworths and Coles stocked around 6,000 home-brand products each, with Woolworths CEO Amanda Bardwell acknowledging the shift in customer preferences.
‘Customers are switching from brands to own brand. We're seeing a shift in terms of customers increasingly looking for value in multiple different ways,’ she said.
However, Woolworths declined to confirm whether more small-name brands would be removed.
CHOICE urged regulators to investigate the impact of home-brand expansion on competition and pricing.
The consumer watchdog had already been scrutinising the supermarket sector, with CHOICE pointing to a similar inquiry in New Zealand.
The 2022 investigation found that while private-label products initially increased affordability and CHOICE, they risked pushing out supplier-branded goods and driving up prices over time.
With more home-brand products taking over supermarket shelves, will you stick to your favourite brands or make the switch?
Let us know your thoughts in the comments.
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