Major supermarket chains Coles and Woolworths have come under fire from consumer advocacy group Choice for their complex pricing methodologies that lack transparency and accountability.
According to a recent survey conducted by Choice, nearly 83 per cent of respondents found it difficult to determine if they were getting a genuine discount or value for money from the supermarkets’ ‘specials’ or promotions.
With Coles and Woolworths controlling an estimated 65 per cent of the food and grocery market in the country, Choice remarked that the lack of competition means consumers are “at their mercy” and have little choice but to spend their money on these two chains.
In a submission to the government’s inquiry into supermarket pricing, Choice argued that both supermarkets routinely manipulate prices to the detriment of consumers.
“The kind of behaviour from the major supermarkets is unacceptable and harmful in a cost-of-living crisis,” said Bea Sherwood, senior policy and campaigns adviser for Choice.
“People are sick of feeling tricked by specials that aren’t specials and feeling pushed into membership programs and multi-buy deals where they buy more than they need.”
Pricing trickery
Choice said supermarkets often engage in various “pricing trickery”, boosting their profits amid a cost-of-living crisis.
In late 2023, the group lodged a complaint with the Australian Competition and Consumer Commission (ACCC) about Coles’ “locked prices” promotion. The supermarket apologised and refunded customers for mistakenly increasing prices on several products.
However, Choice stated that this was just one of many tactics used by supermarkets. While claiming to support consumers during a cost-of-living crisis, they did the opposite. Essential food items got more expensive across the board; pack sizes shrunk while prices increased.
“You look down an aisle with tickets of different colours, which are so confusing,” a consumer told Choice. “All I want to know is if the price is acceptably discounted. The original prices shown on discount tickets are so small you often have to examine the ticket with a magnifying glass.”
Another example the group shared was the “Was/Now'” pricing. It’s when supermarkets drop the price from an artificial high point and call the new price a sale even if the products were already available at lower prices.
Products on “special” that cost the same as before the promotion is yet another example.
“We have seen lots of ‘special’ prices stuck over regular prices, which are the same. There’s nothing special about the new price,” another consumer told Choice.
Step in and step up
As consumers continue to feel the pinch, Choice calls on the government to step in and force supermarkets to make their grocery pricing clear and fair. Some of its recommendations to level the playing field for shoppers include:
- Compelling major supermarkets to publish historical pricing information allows consumers to track price changes.
- A ban on misleading promotional tactics.
- Strengthening and enforcing unit pricing requirements so consumers know what they’re getting for their money.
- Mandatory standards for clear and consistent pricing information.
- Requiring supermarkets to disclose a product’s price or size change prominently.
“Choice is calling on the government to step in and force supermarkets to make their grocery pricing clear and fair,” added Sherwood. “Consumers deserve fair and transparent pricing to be sure they’re getting a good deal when they do their shopping.”
