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Woolworths axes promo strategy

Grocery giant Woolworths has followed Coles’ lead and announced it will be slashing discount stock. 

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The announcement came just one day after Coles said it will be reviewing its promotional and pricing strategy.

The retailer late last week announced it will be moving away from offering short-term specials and instead shift focus on earning “price trust” with consumers by offering more permanent discounts.

The announcement, made at the Australian Food and Grocery Council’s summit last Thursday, was 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.

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Last Wednesday the retailer’s competitor Coles said it had become too reliant on promotions and needed to shift towards a focus on everyday low prices.

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