The supermarket giant has aggressively brought down prices, but its sales are growing far more slowly than its great rival. That’s a serious problem.
Already a subscriber?As usual, Woolworths chief executive Brad Banducci provided great insight into the psyche of struggling consumers on the supermarket giant’s quarterly sales call – and it’s not pretty.
CEO Brad Banducci insists Woolworths’ pricing compared to the competition is as sharp as it’s been in almost a decade.Mexican is apparently the meal of choice – cheap, cheerful and easy to put together. Banducci also helps explain why Woolworths’ aggressive discounting on beef mince is landing well. The first, as Bank of America analyst David Errington pointed out, Woolworths’ sales growth over the past two years is now lagging Coles’ by about 3 per cent, which he says points to execution problems inside Banducci’s team that extend well beyond any three-month period.While Coles says inflation on its shelves was 2.9 per cent in the March quarter, prices at Woolies rose just 0.1 per cent on the same measure, suggesting Woolworths was much more aggressive on prices than Coles.
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