Aussies are unlikely to catch a break from rising grocery costs any time soon, with supermarket juggernaut Coles warning shoppers that prices will continue to climb due to pressures of inflation on suppliers.
Coles chief executive Steve Cain told investors it increased prices by an average of 3.3% over the March quarter but expects costs to hike through the fourth quarter and into the next financial year.
He notes, however, that the jump was still below the 5.3% inflation on grocery food reported by the Australian Bureau of Statistics yesterday.
“Coles Group remains focused on our commitment to deliver trusted value for Australian families amid growing cost of living pressures driven by both local and global supply circumstances,” he said in a statement.
The ABS similarly recorded price hikes across non-food grocery items such as toilet paper, nappies, personal hygiene products like soap and shampoo, detergents, and other cleaning and household goods, reflecting different price pressures including supply chain issues, transport costs and increased input costs.
To help ease the cost of living pressures, Coles ran ‘Down Down’ promotions and released more than 530 new products at ‘everyday low prices’ in the past quarter between January and March. It also said it kept the same affordable prices for at least 1,500 items over the past 12 months.
Coles Group recorded a 3.6% sales increase to $9.1 billion by the end of the third quarter (27 March), with $8 billion generated from its supermarkets.
How to save on grocery bills
Canstar Blue’s latest supermarket survey revealed many Australian households are spending an average of $153 on groceries per week, which isn’t exactly cheap as chips. Here are a few ways you can save money during your next shop:
- Shop homebrand products: Supermarkets are expanding their private label ranges, many of which are often much cheaper than big name brands. Almost half (45%) of those surveyed said supermarket-branded products were good quality.
- Check dates: Prices for some perishable products like meat and milk, as well as salad mixes and other fresh produce, are usually reduced the day before their ‘best before’ date.
- Use supermarket rewards programs: Don’t forget to scan your loyalty card and cash in those points. You might be surprised at how much you’ve racked up, especially since reward programs can be used at a ton of places other than the supermarket.
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