New analysis reveals that products at Coles and Woolworths often switch between promotional and full prices in near-perfect sync, raising questions about competition in Australia's supermarket sector. The data, provided by price tracking website CW Scanner, covers the past two years and includes items such as toothbrushes, ice-cream, and frozen pizza.
Pricing Patterns Uncovered
For example, an Oral-B electric toothbrush kit was advertised at Woolworths for $99.50, appearing to be half-price off its usual $199. However, just a week earlier, the same item was 50% off at Coles and full price at Woolworths. This pattern is common, with products often on promotion at one supermarket while full price at the other, and vice versa.
Other products following this pattern include Dr Oetker Ristorante frozen pepperoni pizza, Blackmores fish oil tablets, Weis mango ice-cream bars, mini Magnums, and Quilton toilet paper. In some cases, the switch from promotional to full price happens simultaneously across both supermarkets. For instance, Natural Confectionary Co's Juicy Burst lollies often go on sale for $2 at Coles on the same day they revert to $5 at Woolworths. Similarly, 1.25-litre Coca-Cola bottles are on sale for $2 at Woolworths while full price at Coles, often swapping on the same day.
Expert Opinions
Erin Turner, CEO of the Consumer Policy Research Centre, said, "This is not what competition looks like. When markets work, businesses feel pressure to give customers a great deal all of the time – not every other week." She warned that cyclical pricing could mislead consumers if combined with in-store claims that trick them into thinking they are getting a rare low price.
Dr Christina Anthony, a consumer behaviour expert at the University of Sydney, noted that the tactic is "commercially rational" and not necessarily collusion, but it erodes transparency and makes it harder for shoppers to know the real price. Andy Kelly from Choice said the strategy disadvantages consumers who cannot wait for sales or track pricing patterns.
Industry Response
Coles stated that many factors influence promotional timing, including seasonality, availability, and supplier preference. Woolworths said timing is influenced by suppliers needing adequate stock for promotions, adding that they have no visibility of competitors' future pricing. Retail expert Prof Gary Mortimer noted that suppliers often drive these promotions, funding campaigns at one supermarket before rotating to the other.
The ACCC's final report on the supermarket industry highlighted that widespread "High-Low" pricing means products can be on promotion for up to 26 weeks a year at Woolworths, while Coles' policies limit specials to less than half the year. The CW Scanner website allows shoppers to compare prices by scanning barcodes or entering URLs, using data from the supermarkets' APIs.
