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.
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