Woolworths said the latest price reduction would last at least until 2026.
Australian consumers could benefit from lower grocery prices as supermarket giant Woolworths launches a major discount program this week.
On May 12, Woolworths said it would lower the shelf prices of 400 products in store and online with an average price reduction of 10 percent.
The supermarket said a family spending $150 (US$96) a week could save around $15 when buying these products, which include cereal, yogurt, soft drinks, and daily necessities.
For example, the price of Woolworths Chicken Schnitzels 600 grams will fall from $10.50 to $9.00 (down 14 percent), while a 2 litre Coca-Cola bottle will drop from $4.20 to $3.70 (12 percent).
Not A Short-Term Promotion: Woolworths CEO
Woolworths Group CEO Amanda Bardwell said the latest price reduction was not a short-term promotion.
“It’s about lower shelf prices on the products we know customers regularly shop for, and providing genuine, lasting and dependable value they can count on,” she said in a statement.
“Individually, each lower shelf price might not seem like a dramatic difference, but they will add up to real savings.
Related Stories
“Today marks the start of a real, tangible change customers will see on the shelf prices of hundreds of products when they shop with us, both in-store and online. And it’s just the beginning.”
According to Woolworths, the lower prices will stay at least until 2026, with more products joining the program in the next period.
“We are committed to expanding the Lower Shelf Price product list in the coming weeks and months to help provide customers with even more value every time they shop with us,” Bardwell said.
Apart from the price discount, the supermarket also suggest saving measures including switching from to Woolworths’ own cheaper brands, or opting for fruits and vegetables that are oddly shaped.
Lawsuits Over Alleged Misleading Discount Claims
Woolworths’ new price cut promotion comes as the supermarket giant deals with claims from the competition watchdog.
The consumer watchdog alleged that Woolworths raised the prices of products before launching “discount” promotions.
In some instances, this saw actual prices become higher than, or similar to, the previous price.
The action is pushing to penalise Woolworths and forcing it to compensate impacted customers with a refund between $200 and $1,300 per person.
In response, Woolworths said it would defend against the class action.
