Supermarket price war moves into liquor aisle
Coles Supermarket’s media campaign that it has “declared war on liquor prices” has prompted immediate retaliation by rival supermarket chain Woolworths.
Coles had announced yesterday that it has cut prices by as much as 31% on a range of beers, wines and spirits in its 1st Choice and Liquorland stores as part of a new pricing strategy.
Today, the director of Woolworths Liquor Group, which owns the Dan Murphy’s chain of liquor stores, Steve Greentree described Coles’ campaign as “misleading”.
Mr Greentree said, “Coles has dramatically overestimated their claims about delivering low prices on liquor.” He claimed that on every comparable item in their catalogue today, Dan Murphy’s is cheaper. In addition, if advertised prices are lower than Dan Murphy’s prices, our shelf prices are automatically reduced.”
However, a spokesperson for Coles told Australian Food News today that Woolworths is “playing catch-up” by adjusting its liquor prices.
In a separate media statement released late last night, Coles’ General Manager of liquor Tony Leon said, “We know a price war isn’t won in a day. We are working toward delivering the best prices on wine, beer and spirits in the lead up to Christmas.”
Coles campaign marks the first time its ‘Down Down’ price cut symbol has appeared in its Liquorland stores.
Coles said its liquor price campaign will not be implemented in Northern Territory or the North West region of Western Australia, in line with its “responsible approach to the sale and enjoyment of alcohol”.
Editor’s comment: This last statement by Coles raises an interesting question: When does cutting the price of liquor become ‘irresponsible’?
What gets me is if Coles can have a “Price War” at this time of year why can’t they just have “lower prices” all the time like Dan’s do as a matter of doing business with consumers in an honest way? iT’S NOT wOOLWORTHS who are playing catch up, that is just spin, it is COLES GREED.
Bye the way do they really think we believe they are not just scoring “brownie points” by not cutting prices in NT and the West?
a. This is a “captive market” for Liquor sales so why give money away?
b. Problem drinking is much more a problem for youth, at this time of year, on the East Coast (include S.A.and Tas.) so why drop liquor prices at all? Could have to do with volume of sales. So transparent it is sickening to see how they rate our intelligence as their customers! Must be Gen. Y “wizz kids” thinking this crap up! Need to get some mature management into these companies if they are to comply with community standards. Again the ACCC needs to build a case to make these two companies accountable for their actions- and quickly!