The supermarket war continues

Published on Thu, 02/02/2012, 08:35:32

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Just two days after announcing it was going to slash fruit and vegetable prices as part of its Super Specials campaign, Coles has said it will be making further price cuts to selected products in the same range.

Greg Davis, Coles fresh produce general manager, said the decision to reduce more prices is the result of the positive reaction from customers to its Super Specials.

“We have also heard from many growers who support our call for customers to buy more fresh fruit and vegetables to help them shift the huge volumes of top quality Australian fruit and vegetables currently available,” he said.

However, Coles flatly rejects claims that its initiative is misleading or causing lower farm gate returns. It says that it is acting “responsibly and fairly” to farmer suppliers.

In turn of these events, Woolworths also announced that it will be reducing prices on a limited number of fresh products, however its adverts suggests these prices will only be effective for two days.

“It’s good to see Woolworths eventually follow our lead in bringing prices down – even if it is only for two days! However customers will be concerned that Woolworths has abandoned a key customer promise – their much trumpeted Fixed Price Guarantee - in order to do this,” Davis said.

“We know customers want certainty around the price they can expect to pay which is why we are committed to offering them 12 fruit and vegetables at Super Special prices every week. Unlike our competitor customers can trust Coles to deliver quality fresh food which really does cost less.”
 


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Congratulations Greg, you're a genius, customers are after a cheaper price, hope you have an MBA for that one. But let's take this for what it really is; marketing, pure and simple, it's about market share. Growers are paying for the shift, firstly with dairy farmers and now with fruit and vege growers. who's next, Greg? Anyone who knows a little about the dairy industry in this country knows that there is a big difference between whole milk, delivered via processors to your fridge and the manufacturing milk market, bottom line is Coles knew how to use milk as a key strategy and the impact is 3+ cents per litre to whole milk producers, may not sound like much, but represents a significant hit to their bottom line, Greg. So back to marketing wars: Let the buyer beware, as to the origin of their product in the long term, as overseas produce is oh so cheap. At least fruit and vege growers have slightly more competition with buyers than the dairy farmers and the milk processors. Maybe Dick Smith has a valid proposition.
Posted by Charlie Best. 02/02/2012 10:09:35 PM
Greg You may think your on a winner, giving the public products cheap, but long term you are killing the Producer that feeds you the Prducts. Wake up you are only young, gimmicks kill,They are not sustainable Had 45 years in wholesale & retail industries.Been their, done that. Seen it all, pull back, before it misfires dramaticaly on you. I am in my 70's
Posted by Graham Heath. 03/02/2012 10:51:23 AM
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