Just one day after Coles announced that it would review its promotional and pricing strategy in June, Woolworths confirmed that it would move away from short-term specials and instead shift focus on earning ‘price trust’ with consumers by offering more permanent discounts.

Woolworths made its announced at the Australian Food and Grocery Council summit in response to rising cost of living pressures.

Woolworths director of buying, Peter McNamara told the conference that the shake-up will see the grocery retailer consistently offer competitive prices to give them an upper hand in the market.

“While customers are always looking for specials … it is only a great deal for that individual week,” he said.

This announcement followed the launch of an app to help Woolworths reduce empty shelves and save millions in lost sales by keeping track of stock levels in near real-time. It automates stocktake by using historical sales data to calculate sales expectations and send alerts to suppliers when sales don’t meet expected forecasts.

Woolworths Director of Fresh Foods and Replenishment Paul Harker said the app drives a step-change in merchandising standards and stock availability.

At the time, he commented, “We’re proud to be the first Australian retailer to invest in a free lost sales monitor for our suppliers. We see it as a genuine win-win because a lost sale for a supplier is a lost sale for Woolworths, and most likely an unsatisfied customer.”