Why Woolworths and Coles are now selling thousands more ‘own brand’ products
Recent reports show Woolworths and Coles are managing to hold smaller competitors at bay – in part by adopting a strategy from their rival, Aldi.
Australia’s two largest supermarket chains, Woolworths and Coles, have been maintaining their market dominance by capitalizing on tactics similar to those employed by Aldi. Both companies have been expanding their own brand product lines over the years, which have become increasingly popular among consumers as a cost-effective alternative to expensive branded items.
In recent years, Coles and Woolworths have introduced a combined total of thousands of own brand products, some of which have become household names like Coles Simply, Woolworths Essentials, and Woofin' Good pet food. This strategy has helped them maintain a near-unchanged market share since 2001, despite the emergence of Aldi as a strong competitor.
In their latest annual reports, Coles reported a 6.1% increase in sales of its exclusive products, while Woolworths launched over 445 new and 680 refurbished own and exclusive brands, resulting in a 5.5% growth in sales of these products. As both companies continue to invest in their own brand offerings, they aim to further solidify their positions in the Australian grocery market, while suppliers adjust to the evolving landscape and navigate the challenges of competing with larger players.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
