AU: Coles cutting again
Barely a week after suppliers accused Woolworths of threatening to take products off shelves unless suppliers cut prices by as much as 10 per cent, Coles said it would reduce prices on a range of branded and private label products by up to 29 per cent.
However, Coles made it clear that its latest price reductions would be funded entirely by the retailer, not suppliers, according to The Australian Financial Review.
"We're using the same model we have in the past – we're prepared to sacrifice margin to drive volume and end up getting a bigger dollar profit," a Coles spokesman said.
"That's been the model that's worked on all the 'Down Downs' and has driven our industry out performance on sales and we expect it to continue.
"All the suppliers who are part of it are very supportive because they see it as providing the necessary incentive to get consumers to open their wallets and spend."
Coles has cut prices on more than 6000 grocery products by an average 10 per cent since the Down Down campaign commenced, forcing Woolworths and Metcash to follow suit.
Source: fw.farmonline.com.au
