Supermarket giants' brand sales to leave bargain chasers smiling
They are the short sharp rolling sales giving customers 50 per cent off well-known brands.
Coles and Woolworths have ramped up weekly sales, with Coles launching its biggest ever beauty sale tomorrow.
More than 225 products across leading beauty brands will be half price for a week.
Coles says it’s taking on Chemist Warehouse and Priceline in the beauty stakes.
Woolworths has done similar sales on freezer items, with both supermarkets’ weekly catalogues making for compulsive reading among savvy shoppers.
NextGen partner Neil Rechlin says this is the two big supermarkets squarely taking on Aldi because they cannot win the price perception fight on home brands.
Their generic products are simply not as good as Aldi’s.
“So they’re using brands as a way of competing with Aldi who just can’t compete that way on brands,” Mr Rechlin says.
The supermarkets put huge pressure on suppliers to participate in such sales and the aim is to show they are better value than everybody else.
Chemist Warehouse, known for selling cheap beauty products and perfumes, has gone from strength to strength and is almost Aldi-esque in that it’s cheapest in market for what it sells, Mr Rechlin says.
From a shopper’s perspective, as the battle continues and the noise about specials and sales amplifies, you’ll find everything you need is on special if you’re willing to wait then stock up when it is.
“Shoppers need to learn to sit tight and stock up when things are on sale,” Mr Rechlin says. “Who’s the fool that pays full price for anything these days?”
Australia is already one of the most promoted markets in the western world.
While the corporate rhetoric from Coles and Woolworths has been that the industry is overpromoted, in practise they continue to go even harder on sales.
The weekly sales are more about attacking Aldi’s market share than about the arrival of Kaufland and Lidl in Australia, Mr Rechlin believes.
The latest Roy Morgan survey data shows Woolworths has a 34 per cent share of the $100 billion market while Coles has 27.6 per cent.
Aldi has 11.4 per cent and IGA has 7.1 per cent.
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