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Highlights
- Woolworths cuts prices on 400 grocery items
- Competition heats up with Coles in consumer value race
- Policy pressure pushes supermarket shift
Woolworths Group Ltd (ASX:WOW) is set to reduce prices on nearly 400 grocery products starting May 14, 2025, as part of a broader effort to ease household spending pressures and address increasing scrutiny over food affordability. This move places the retail heavyweight firmly in the spotlight on the ASX200, particularly within the competitive consumer staples segment.
The pricing reset arrives under the leadership of Woolworths' new CEO Amanda Bardwell, who earlier committed to cutting AU$400 million in internal operational costs. These savings are now being partly redirected toward shelf-price reductions, with selected product prices expected to fall by an average of 10%.
Items set for price reductions include a range of branded and private-label products such as Greek yoghurt, bacon, schnitzel, frozen berries, Woolworths oats, Coca-Cola, Babylove Nappies, and Maggi noodles. The new prices will be available both in-store and online and are planned to remain in place until at least 2026.
For an average household spending AU$150 weekly on groceries, Woolworths estimates potential savings of approximately AU$15—a notable shift as families continue to navigate a high-cost living environment.
Amanda Bardwell emphasized the importance of meaningful changes that shoppers will notice at the checkout. “This isn’t just a short-term promotion,” Bardwell said. “It’s about dependable value on products people buy frequently.”
The timing of this strategy also aligns with growing political pressure. The federal government, led by Prime Minister Anthony Albanese, has signaled new legislation aimed at tackling alleged supermarket price inflation. Woolworths, along with competitor Coles Group Ltd (ASX:COL), has been under investigation by the Australian Competition and Consumer Commission (ACCC) for potentially misleading discount practices.
This price overhaul also marks a strategic move to close the perceived affordability gap with Coles, which has recently seen stronger sales momentum. The rivalry is expected to further energize the supermarket sector within the ASX200 index.
Retail investors following consumer-focused ASX dividend stocks may observe shifts in sentiment as Woolworths responds to public expectations while seeking to maintain margins. For those exploring similar companies in the dividend space.
Meanwhile, the evolving dynamics between Woolworths and Coles offer an interesting view into how large-cap consumer businesses navigate both regulatory and competitive forces within Australia’s flagship index.
Woolworths also confirmed plans to expand its “Low Price” program in the months ahead, signaling a longer-term commitment to keeping prices accessible for everyday shoppers.
