Supermarket wars get going again: Woolworths to cut prices

Woolworths is announcing price cuts on hundred of items in another bid to out-do Coles.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian supermarket wars are far from over.

In the latest sally, Woolworths (ASX: WOW) has announced that, starting tomorrow, it will cut prices – up to 33% in some cases — across hundreds of items at its stores, including on MSA Australian beef, sliced and shaved ham, International Roast Coffee, Tip Top bread and Arnott's multipacks.

It is the company's "biggest ever drive on value" with customers likely to find, on average, between "40 and 50 Every Day Value price cuts in every single aisle," according to a Woolworths press release, which cited competitor Coles, owned by conglomerate Wesfarmers (ASX: WES).

"While we know that Woolworths is consistently cheaper than Coles on a comparable basket across the store, we are constantly looking for new ways to offer our customers ways to save. Looking at an average basket, Every Day Value price cuts could save Australian families more than $200 between now and Christmas, and almost $400 in a year on some of the most popular products on their shopping lists," said Tjeerd Jegen, managing director of Woolworths supermarkets.

In the most recent quarter, Woolworths sales from its supermarkets division grew 5% and sales from continuing operations grew 5.7% over the third quarter of 2012 to $14.4 billion. The company has guided to between 4% and 6% growth in net profit after tax for the full year 2013.

Woolworths shares are down about 10% since the end of April, while Wesfarmers shares have slid 5% and the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has fallen a little more than 2% over the same period.

WOW, WES, XJO

Attention investors: discover two of the ASX's most promising small cap companies in The Motley Fool's brand-new free investment report. Click here now, your copy is FREE!

More reading

Motley Fool contributor Catherine Baab-Muguira has no financial interest in any company mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »