Key facts
- Woolworths raised prices on at least four staple items during its "Price Freeze" promotion.
- The supermarket increased the price of RSPCA-approved chicken breast fillets by 33% during the promotion.
- The price of Woolworths "Mexican Style 3 Bean Mix" increased from 60c to $1 on June 17, then dropped back to 60c on August 17.
- Woolworths justified price increases during the promotion by stating previous prices were promotional, not standard shelf prices.
- Marketing expert Jana Bowden stated that raising prices after claiming they were fixed is akin to not delivering on a 'price freeze' promise.
- Consumer advocacy group Choice noted a lack of transparency in how supermarkets determine standard shelf prices.
Woolworths raised prices on at least four staple items, including chicken fillets and canned beans, within days of launching a three-month "Price Freeze" promotion intended to help customers manage the cost of living. Pricing data compiled by comparison website CW Scanner showed that the supermarket increased the prices of key products after the promotion began on May 1.
The supermarket nearly doubled the price of a 420g can of Woolworths "Mexican Style 3 Bean Mix" from 60c to $1 on June 17, before dropping it back to 60c on August 17. Similarly, the price of RSPCA-approved chicken breast fillets increased by 33% during the promotional period, alternating between $9 and $12. Woolworths declined to comment, but it is understood the company justified the increases by stating that the previous prices were promotional, not standard shelf prices.
Woolworths CEO Amanda Bardwell had stated in a press release on April 30 that the "Price Freeze" on 300 staples was a promise that the shelf price seen on that day would be the most customers would pay for three months. Marketing expert Jana Bowden commented that raising prices after claiming they were fixed was "akin to not delivering on the everyday consumer’s interpretation of a ‘price freeze’ promise," questioning how consumers would know the actual starting prices.
Consumer advocacy group Choice also noted that consumers are often confused by supermarket pricing tactics due to a lack of transparency regarding standard shelf prices. This analysis comes amid heightened scrutiny of Woolworths' and rival Coles' pricing strategies, with Woolworths currently awaiting a verdict in a federal court case brought by the Australian Competition and Consumer Commission (ACCC) over alleged fake discounts.