Woolworths committed to cutting prices in battle with Coles, Aldi
Woolworths says it will invest $750 million into reducing food and liquor prices in 2015 and has refuted analyst claims that it has taken its foot off the promotional pedal to boost profits.
As Coles unveiled plans to reinvest cost savings from a $38 million redundancy program into cutting grocery prices and fixing up stores, Woolworths reiterated that it was committed to reducing prices after saving customers $750 million in 2014 and trimming the cost of the average shopping basket by 3.1 per cent.
"Investment in prices for our customers is clearly a key priority for Woolworths given the competitive market in which we’re operating," a Woolworths spokesman told Fairfax Media on Thursday.
Woolworths chief Grant O’Brien says the supermarket has gained market share at the fastest rate over the past three years. Photo: Christopher Pearce
Woolworths chief executive Grant O’Brien and director of supermarkets Tjeerd Jegen have rejected suggestions from analysts that Woolworths raised prices in the June quarter to boost margins in food and liquor and achieve its profit guidance in the face of weaker earnings from BIG W and losses in home improvement.
nMr O’Brien said Woolworths prices had been "consistent" in the third and fourth quarters and it had gained market share at the fastest rate for three years. Sydney Morning Herald – Read more…