Yahoo Finance Coles offers cost of living relief with big pricing move
The initiative comes as record numbers of Aussies struggle with grocery expenses.
Coles has slashed prices on a range of grocery essentials to help combat the ongoing cost-of-living crisis.
By reducing the prices of more than 370 grocery items, and locking in the discounts for three months, the supermarket giant says the aim is to help Australian families who are struggling to make ends meet.
The price reductions cover a range of essentials and items for popular winter meals, including fresh cuts of meat and freezer items, along with breads and cereals, with prices dropped and locked until at least July 4.
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Families looking to stock up on pantry staples can also stretch their budget further with the retailer's Big Pack Value range, which offers savings of up to 35 per cent on larger pack sizes of products, ranging from 2kg Bega Peanut Butter to bulk packs of noodles.
Coles Group CEO Steven Cain said the Dropped and Locked campaign was designed to help Aussie households struggling with the rise in the cost of living, especially moving into the colder months.
"Dropped and Locked ...is focused on breakfast, lunch and dinner," Cain said. "We know customers are looking for cheaper cuts of meat, which is why we have focused on beef mince, which is our number one beef line."
Surging inflation behind Coles price drop
In March of this year, financial comparison site Finder published its Cost of Living report, which revealed 78 per cent of Australians had to decrease their expenses to manage surging inflation, while 51 per cent experienced financial pressure due to escalating costs.
Data from the Australian Bureau of Statistics (ABS) showed that in November 2022, Australians spent $11.4 billion at supermarkets, which was around $520 per person. By comparison, total grocery spending in April 2021 was $10.2 billion, or $464 per person.
Grocery prices causing financial stress
Since 2019, Finder has conducted its Consumer Sentiment Tracker (CST), which is a continuous survey monitoring the financial stress and sentiment of the Australian public. As part of the survey, participants are asked about bills or expenses causing them financial stress.
Over the past three years, the percentage of Australians listing the top four expenses - housing, groceries, petrol and energy - has increased. However, grocery prices have had the most significant surge.
While only approximately 20 per cent of households identified groceries as a cause of financial stress in 2019, that percentage has steadily risen over time. By March 2023, it had reached 43 per cent, surpassing the 42 per cent of Australians who identified housing costs as their most stressful expense.
The average Australian household now spends $185 per week on groceries according to the CST, up $37 per week compared to 12 months ago. That's a $1,924 increase per household – or $18.8 billion nationwide – in a year.
Sarah Megginson, money expert at Finder, said the cost-of-living crisis was putting a lot of pressure on family budgets.
"Households are facing some very tough times and escalating grocery costs are an extra burden. Aussies are having to change how and where they shop just to keep food on the table."
The good news
Retail price increases have been driven primarily by COVID-19 supply chain issues, rising energy and fertiliser costs - due to the war in Ukraine - as well as unpredictable weather patterns over the past couple of years in Australia.
The good news is that these factors are now easing and economists are predicting inflation to fall and cash-rate cuts to follow. For many Australian households, this relief can't come soon enough.
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