Two of Australia’s leading supermarkets, Coles and Woolworths, have been berated by the renowned consumer advocacy group, Choice, for substantially increasing their prices while Australians grapple with a burgeoning cost-of-living crisis.
This year, under scrutiny, these prevalent supermarkets were conferred with Shonky Awards. This annual register focuses on highlighting the worst-performing products and services in the market.
Boasting more than a billion dollars in profit each this year, these large-scale corporations have led Australians to question its justification, according to Alan Kirkland, the CEO of Choice.
A nationally representative survey conducted in September brought forth unsettling findings. Over 60 percent of participants believed that enhanced profits of these supermarkets were an outcome of increased prices. Conversely, merely one-fifth of them thought that this duopoly was making considerable efforts to maintain lower prices.
Adding to Kirkland’s revelations, the survey also uncovered that nearly 88 percent of Australians are anxious about the prices of food and groceries convenient, an alarming hike from the 56 percent in January 2021.
Undeterred, Coles and Woolworths have kept the focus on their efforts to aid with the cost-of-living. However, the scenario behind the scenes presents a stark contrast as the companies have been banking enormous profits. Inconsistencies in prices baffle customers, making it tough to ascertain genuine discounts, thus earning themselves the Shonky award.
From North Sydney, Graham Dawson, a shopper shared his experiences, expressing a sense of ‘powerlessness’ against such major corporations amidst soaring prices.
In response, a spokesperson from Woolworths emphasized the supermarket’s efforts to assist customers in saving money. The spokesperson elaborated on efforts such as a Low Price program, Prices Dropped campaigns, and a multitude of weekly specials that aim to alleviate the financial burden on Australian families.
Meanwhile, a spokesperson from Coles furnished that the company makes just $2.60 for every $100 a customer spends. Boasting employment opportunities for more than 120,000 Australians, they further outlined their association with 8000 suppliers and farmers and ongoing investment in providing value to their customers.
Contradicting these statements, Rosie Thomas, Choice director of campaigns and communications revealed that less than 20 percent of shoppers believe that these two supermarket juggernauts are doing all they can to keep prices low.
Former Australian Competition and Consumer Commission chair Rod Sims arlier urged increased competition in the supermarket industry amidst rising concerns about escalating prices.
Aside from the two supermarkets, the Shonky Awards also listed Kogan, for tricking its customers to pay a 99 dollar sign-up fee, Xbox Mini Fridge for not performing its primary function of cooling, and RentTech for data exploitations. Personal alarms, typically used by vulnerable individuals to notify carers of incidents, were also called out for their unreliability and complex usage.
