Raising grocery prices at a time when consumers are already feeling the squeeze has earned supermarket duopolises Coles and Woolworths an unwanted gong in Choice’s annual Shonkys awards.
The consumer group called out the pair for cashing in during a cost-of-living crisis as billions of dollars in profits hit customers struggling to survive rising inflation and interest rates.
Coles posted an annual profit of $1.1 billion this year and Woollies reported an annual profit after tax of $1.62 billion, up 4.6 percent on the previous year.
“Rather than doing right by consumers, our Shonky winners have only disappointed during this difficult time,” Choice chief executive Alan Kirkland said.
‘In a nationally representative Choice survey conducted in September this year, more than 60 percent of shoppers believe the big two are making a lot of money from price increases, and less than 20 percent think Coles and Woolworths are doing enough to keep price increases within limits. prices low.’
But a Coles spokesperson said the claim ignores the company’s small profit margin and that the supermarket is committed to reducing prices for shoppers.
Down, down or up, up. Coles has been outed by Choice for raising prices while making big profits.
“For every $100 a customer spends, Coles earns $2.60,” the spokesperson said.
Retail analyst Phillip Kimber of E&P Capital said at the time that Coles’ profit result was two percent below consensus expectations and would be negatively received by shareholders.
Griffith University consumer spending expert Graeme Hughes said Coles and Woollies claim their higher profits are due to maximizing internal operations and efficiency, but consumers have the right to question whether they have been treated fairly .
“I would say most companies have put profits before people and not much thought has been given to where this will lead them in the longer term,” he told AAP.
A Woolworths spokesperson said the company is acutely aware of the pressures placed on customers and is doing more every day to help customers spend less.
Online retailer Kogan received a Shonky for “tricking” customers into signing up for a $99 subscription service they didn’t know they were paying for.
Choice claims that customers were caught purchasing items online that offered a free shipping option when, unbeknownst to them, they had been signed up for the unwanted Kogan First subscription by the auto-checked box.
A spokesperson for Kogan encouraged customers to review the value of the subscription and form their own opinions.
“On average, Kogan First members get more than $160 in additional value every year – smart shoppers choose Kogan First,” he said.
Ukonic received the dubious Choice award for their Xbox Mini Fridge, made in partnership with Microsoft, which was found not to really chill things out.
The group also targeted two entire sectors for failing consumers.
RentTech companies – third-party online rental platforms that connect potential tenants with landlords – have been called out for ‘data gouging’ people desperate for a home amid a rental crisis.
Personal alarm systems intended to give loved ones assurance about the safety of the elderly and vulnerable relatives have been criticized for being unreliable and difficult to use.
“I would liken it to the seat belt in the car not working,” Hughes said.
Ukonic has been contacted for comment.