Supermarket shares down after underwhelming financial results

ABC NEWS (Australia)

Woolworths boss Amanda Bardwell admits the supermarket chain has work to do to rebuild trust with customers. Its latest profit results have revealed weaker sales growth than rival, Coles. Both supermarkets’ giants are cutting prices and selling more home brand products to fend off competition from Aldi.

Transcript

00:00After years of allegations about price gouging, Australians are shopping around.

00:07We often do the Aldi shop first and then top up with things we can't get from Aldi.

00:11Woolworths and Coles are replicating Aldi's home brand strategy

00:15and both of them made announcements about price drops on hundreds of products

00:19ahead of their annual results this week.

00:22It's a highly competitive market right now in groceries and food overall.

00:26The battle is playing out though in private label.

00:29Woolworths results out today showing a 5% growth in their exclusive brands.

00:34Interestingly, that premium tier of Coles Finest has been our fastest growing tier at 13%.

00:40With all of this talk about lower prices,

00:43you'd almost forget that Coles and Woolworths are still battling it out

00:47with the consumer watchdog over allegations of fake discounts.

00:50And when it comes to home brand,

00:52the ACCC also recently noted that that's where they make their margins.

00:57Both majors posted around $1 billion in profit each.

01:02It would be great if they passed on some of those rewards to the customers.

01:05It has been a very disruptive year and so there is work for us to do to rebuild customer trust.

01:11As fresh inflation figures out today show that grocery price rises are still hovering around 3% annually.

01:18And so this will be a very early time.

01:19And so we'll be in the next video,

01:20we'll see you next time.

01:21We'll see you next time.

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