Supermarket giants start a new price war

Anybody who lives in Australia will know that Woolworths and Coles are two of the most popular supermarkets in the country. As the supermarket industry is highly competitive, they are constantly trying to undercut one another. Due to this it should be no surprise that the two supermarkets are starting a price war on beer, wine and spirits.

Coles slashed its prices by 31% in the month of November. This discount is available at a number of Coles stores. This includes branches in the city as well as those in suburbs such as Osborne Park. This price reduction prompted Woolworths to retaliate by deepening discounts at their Dan Murphy's chain. The Coles brand then responded by pricing some items 5 cents cheaper than the prices offered by Woolworths.

This sort of behaviour is not uncommon with supermarkets in Australia. Food giants such as Woolworths and Coles are attempting to gain a bigger piece of the market share. In the process they are squeezing out independent liquor retailers. Smaller retailers simply do not have the resources to promote their specials as well as big supermarkets. For example Coles will generally market their products using a combination of social media, television advertisements and printing services. Most people will receive a brochure in the mail detailing the current deals available at these supermarkets. Currently it looks as though neither brand is prepared to give up until they either dominate the market or run out of steam financially.