Key facts
- Woolworths' Disney Ooshies promotion caused a temporary slump in Coles' supermarket sales.
- Coles' full-year results showed sales growth continued into July but then slumped due to the competitor's campaign.
- The Ooshies promotion involved collecting Disney, Marvel, and Star Wars characters after spending $30.
- Some schools have banned Ooshies due to distractions and trading disputes.
- A survey found nearly two-thirds of parents changed their shopping behavior due to the Ooshies promotion.
- Environmental groups are concerned about the plastic waste from the collectables.
Woolworths' recent Disney Ooshies collectables promotion has significantly impacted competitor Coles' sales, causing a temporary slump in growth. Coles announced that while its full-year results showed market share gains, July sales moderated due to Woolworths' popular campaign, which offered characters for a $30 spend. Coles chief executive Leah Weckert described the effect as temporary and primarily affecting physical stores.
The Ooshies craze, featuring Disney, Marvel, and Star Wars characters, has generated substantial interest, with Woolworths running out of stock prematurely. The collectables, designed for children to trade and play with, have also spurred a large online resale economy, with dedicated Facebook groups attracting tens of thousands of members. Some schools have banned the toys due to distractions and trading disputes, a move that Ooshies developer Headstart International views as a sign of the campaign's success.
A survey by YouGov revealed that nearly two-thirds of parents altered their shopping habits due to the promotion, with one in five adult collectors planning to sell them online. Millennials were identified as the most enthusiastic collectors. However, environmental groups have raised concerns about the plastic waste generated by the collectables, with one expert calling them "future landfill." Woolworths stated the Ooshies are made from 97% recycled thermoplastic rubber and has provided recycling bins.
Despite the temporary sales dip, Coles reported a 1% increase in net profit to $1.09 billion for the year to June, with its supermarket profit margin rising to 5.7%. The company indicated plans to continue its own promotional collectable campaigns in the future.