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Suppliers tick Coles ahead of Woolies

Coles-3Food and grocery suppliers have given Woolworths its lowest rating in eight years in another sign Coles is winning the supermarket war.

The latest UBS supermarket supplier survey gave Woolworths an overall score of 5.7 out of 10, and Coles a total score of 7.1.

It is Woolworths lowest score and Coles’ highest rating since the survey began in 2007.

“Coles is winning the marketing war and is executing better instore via a better fresh offer and instore compliance,” UBS says.

“We believe a real opportunity exists for Coles to extend its lead while Woolworths’ morale is at its lows and the group is losing momentum.”

Suppliers rated Coles’ pricing strategy as its biggest strength.

They showed the most concern about Woolworths’ instore execution, promotions and pricing; three key areas that directly affect customers.

UBS also noted in its report that Woolworths’ `Cheap Cheap’ campaign has not been well received.

“Shoppers don’t want to buy cheap, they want value,” the report said.

“Coles, through its `Everyday’ program, family (Curtis Stone) and community (fresh grants) is winning the marketing war, which we expect to continue.”

The survey requires suppliers to rank the major supermarkets across 26 areas, including pricing, promotions and staff morale.

AAP

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