Metcash boss Doug Jones says IGA 'able to compete' with Coles, Woolworths as the major supermarkets wage price war
A major Australian supermarket chain is ready to tough it out against Coles and Woolworths as the two giants wage war to lure cash-shy shoppers to their stores.
Metcash, the parent company of IGA and Foodland, on Monday revealed an 8.9 per cent sales lift for the 12 months to April 30, while net profit jumped 10 per cent.
The company's boss Doug Jones said Metcash was ready for some heightened competition in the supermarket space as the two major players embark on a price war.
'We absolutely are able to compete with them,' Mr Jones told The Australian.
'We are very clear that our processes of monitoring their (Woolworths and Coles) pricing and adjusting our own will continue to be effective.
'And we're able to react quickly, and we do, and so we feel confident that we can and do continue to be highly competitive in what we offer our shoppers.'
In its financial results, Metcash said food sales (excluding tobacco) jumped 20 per cent in part due to the company acquiring restaurant, cafes and canteens supplier Super Foods and opening 22 new IGA stores in the year.
The solid sales boost comes as Metcash does about seven per cent of the supermarket sales in Australia, according to estimates from the Australian Competition and Consumer Commission.
Aldi has nine per cent of the market while Coles has 29 per cent and Woolworths controls about 38 per cent.
Woolworths in May struck the first blow in the new price war by vowing to slash the costs of more than 400 groceries in a $100m move.
It claimed a family that spend $150 on their weekly shop could save about $15 per week when purchasing the discounted products, which includes Greek yoghurt, frozen berries, rice, chicken schnitzel and more.
The leading supermarket giant's play follows Coles outperforming Woolworths in terms of sales growth over recent months.
Coles struck a blow at Woolworths earlier this month when it revealed plans to cut prices on more than 300 items including household staples in part of its latest 'Down Down' campaign.
The latest CHOICE quarterly report on supermarket prices across Australia showed Aldi continues to be the cheapest of the major stores while IGA was the most expensive.
In December, the consumer group recorded the prices of 14 common groceries across 104 Coles, Woolworths, IGA and Aldi stores.
CHOICE chief executive Ashley de Silva said Coles and Aldi had both shown price drops over the 12 months to December, while a Woolworths shop had increased in price.
"From March 2024 to December 2024, Aldi's basket price with specials remained almost unchanged, decreasing by just 0.3 per cent. In March, Aldi's basket was $51.51, compared to $51.36 in December," Mr de Silva said.
"The Coles basket with specials cost on average $68.52 in March, compared to $66.84 in December - a 2.5 per cent decrease.
'The Woolworths basket with specials increased by 3.7 per cent, with the price going from $64.93 in the first quarter to $67.34 in the latest quarter.'
Coles and Woolworths were found to be some of the world's most profitable supermarket businesses in the world.
An Australian Competition and Consumer Commission inquiry also determined some supermarkets promotions can also make it tricky for customers to judge whether they are getting a good deal.
A final report put forward 20 recommendations, which included greater transparency for suppliers, regulations on promotional practices, and improving competition in the supermarket sector.
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"While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. 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The Advertiser
5 hours ago
- The Advertiser
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An AFL stadium deal worth close to $1 billion is on the nose with most voters in one state but neither the premier or his would-be replacement are sniffing the electoral breeze. With a snap election weeks away, Tasmanian voters were surveyed on their attitude to a contentious deal struck with the AFL to build a $945 million roofed stadium at Macquarie Point. The Hobart stadium is a condition of the licence for the Devils' inclusion in the competition in 2028. The online poll of 842 voters, conducted by YouGov on behalf of progressive think tank The Australia Institute from June 12 to 16, indicates most Tasmanians believe the stadium deal is unfair. More than two out of three (69 per cent) support Tasmanian parliament renegotiating with the AFL to avoid constructing a new stadium. Support to renegotiate was even stronger among Labor supporters (71 per cent). Liberal voters were the most likely to disagree (38 per cent) but a majority (56 per cent) still backed the proposition. More than two-thirds of those surveyed also believed the AFL was treating Tasmania unfairly in its requirements for granting the state a licence. The AFL has been staunch in its refusal to renegotiate the deal, declaring the stadium a non-negotiable condition. The Australia Institute's Leanne Minshull said the deal was a "dud" and one of the most one-sided in Australian sport. "This state deserves to have a team in the AFL, but Tassie taxpayers don't want to be on the hook for a billion-dollar indoor stadium they don't want," she said. Some analysts have described the July 19 state election as a referendum on the stadium, but Liberal Premier Jeremy Rockliff and Labor leader Dean Winter have been unwilling to budge on their support. Mr Rockliff was sticking to his guns on Monday, dismissing the poll as "bodgey" and "anti-jobs". "This week we would've been putting forward legislation to in fact get on with the job and build the stadium ... (but) unfortunately Dean Winter and Labor forced the election," he told reporters. Mr Winter also reaffirmed his support for the stadium while criticising the way the AFL deal came together without cabinet approval or treasury advice. "This has been a problem that Jeremy Rockliff has created and it's a problem that now needs to be dealt with seriously and methodically," he said. Mr Rockliff separately revealed one of two Spirit of Tasmania replacement ships was expected to arrive in August. The vessel has been docked in Scotland for six months after his government unsuccessfully tried to lease it. The other has been undergoing sea trials in Finland, with Tasmania to officially take ownership during the week. The ferries won't be in service until late 2026, years behind schedule, because a berth has not been built in Devonport. The Spirit of Tasmania debacle was one of the reasons cited by Labor in its successful no-confidence vote against Mr Rockliff. An AFL stadium deal worth close to $1 billion is on the nose with most voters in one state but neither the premier or his would-be replacement are sniffing the electoral breeze. With a snap election weeks away, Tasmanian voters were surveyed on their attitude to a contentious deal struck with the AFL to build a $945 million roofed stadium at Macquarie Point. The Hobart stadium is a condition of the licence for the Devils' inclusion in the competition in 2028. The online poll of 842 voters, conducted by YouGov on behalf of progressive think tank The Australia Institute from June 12 to 16, indicates most Tasmanians believe the stadium deal is unfair. More than two out of three (69 per cent) support Tasmanian parliament renegotiating with the AFL to avoid constructing a new stadium. Support to renegotiate was even stronger among Labor supporters (71 per cent). Liberal voters were the most likely to disagree (38 per cent) but a majority (56 per cent) still backed the proposition. More than two-thirds of those surveyed also believed the AFL was treating Tasmania unfairly in its requirements for granting the state a licence. The AFL has been staunch in its refusal to renegotiate the deal, declaring the stadium a non-negotiable condition. The Australia Institute's Leanne Minshull said the deal was a "dud" and one of the most one-sided in Australian sport. "This state deserves to have a team in the AFL, but Tassie taxpayers don't want to be on the hook for a billion-dollar indoor stadium they don't want," she said. Some analysts have described the July 19 state election as a referendum on the stadium, but Liberal Premier Jeremy Rockliff and Labor leader Dean Winter have been unwilling to budge on their support. Mr Rockliff was sticking to his guns on Monday, dismissing the poll as "bodgey" and "anti-jobs". "This week we would've been putting forward legislation to in fact get on with the job and build the stadium ... (but) unfortunately Dean Winter and Labor forced the election," he told reporters. Mr Winter also reaffirmed his support for the stadium while criticising the way the AFL deal came together without cabinet approval or treasury advice. "This has been a problem that Jeremy Rockliff has created and it's a problem that now needs to be dealt with seriously and methodically," he said. Mr Rockliff separately revealed one of two Spirit of Tasmania replacement ships was expected to arrive in August. The vessel has been docked in Scotland for six months after his government unsuccessfully tried to lease it. The other has been undergoing sea trials in Finland, with Tasmania to officially take ownership during the week. The ferries won't be in service until late 2026, years behind schedule, because a berth has not been built in Devonport. The Spirit of Tasmania debacle was one of the reasons cited by Labor in its successful no-confidence vote against Mr Rockliff.
