Data Shows Coles and Woolworths Alternate Promotions on Shared Products

New analysis of supermarket pricing data shows that Coles and Woolworths often alternate promotional discounts on the same products. The pattern was identified by the price tracking website CW Scanner and covers items such as Oral-B electric toothbrushes, Dr Oetker frozen pizza, Weis ice cream bars, and Quilton toilet paper.

The data indicates that when a product is on sale at one chain it is frequently sold at full price at the other. In several cases the switch from promotional price to full price occurred on the same day or within a short period.

Burst lollies were recorded at $2 at Coles on the same day they returned to $5 at Woolworths. 25-litre bottles followed a similar pattern, selling for $2 at Woolworths while listed at $4 at Coles. Fairy dishwashing tablets also showed alternating prices, with one supermarket selling the product at $76 while the other offered it at a sale price of $30 for several days before swapping.

Erin Turner, chief executive at the Consumer Policy Research Centre, said cyclical high-low pricing could be misleading when combined with in-store claims that suggest a rare discount. Dr Christina Anthony, a consumer behaviour expert at the University of Sydney, described the tactic as commercially rational and not necessarily evidence of collusion.

Andy Kelly, a director at the consumer advocacy group Choice, said high-low pricing has a large impact on consumer behaviour and disadvantages shoppers who cannot wait for sales. Prof Gary Mortimer, a retail expert at the Queensland University of Technology, said suppliers often fund the rotating promotions.

Coles stated that decisions on promotions consider seasonality, availability, supplier preference, and customer purchase patterns. A Woolworths spokesperson said promotion timing is influenced by suppliers needing adequate stock and that the company has no visibility of competitors' future pricing plans.

The ACCC report from its supermarket industry examination noted that items may be promoted for up to 26 weeks a year at Woolworths and that Coles policy limits specials to no more than half the year.