Market Chatter: Coles Rejigs Fresh Produce Strategy as Price War Brews with Woolworths

MT Newswires Live
04-14

Coles Group (ASX:COL) is planning to restructure its all-important fresh produce section in a move that could renew a price war with supermarket rival Woolworths Group (ASX:WOW), The Australian reported on April 13, citing a Coles executive.

Coles will transition to a 12-week promotion planning cycle, significantly longer than the current 10-day cycle, Charlotte Gilbert, Coles general manager for fresh produce, told The Australian.

Gilbert said this will enable the company to think longer-term and improve relationships with suppliers and customers through better promotional allocations. In comparison, the current cycle "often leads to volatility" and "embeds a reactive culture," Gilbert added.

The move is expected to challenge Woolworths at a time when shoppers bemoan elevated grocery prices. In February, Woolworths disclosed AU$400 million in savings, which are expected to be partly allocated to discounts and promos, The Australian said.

Woolworths did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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