Woolworths commits to ‘concerning’ store change despite customer anger
A Woolworths has been converted into a Metro store, despite concerns that high prices and fewer private label options will ‘further alienate people on low incomes’.
In Sydney’s south, Alexandria locals have demanded answers from the supermarket giant after the store was remodeled, despite backlash from customers.
The Metro stores specialize in ready-made meals, take-away snacks and other goods.
The Alexandria Residents Action Group (ARAG) held a community meeting last week, attended by Sydney Mayor Clover Moore and Metro director Justin Nolan.
Ofir Zeevi, a local Alexandria resident and ARAG member, said Woolworths Metro stores have been associated with a number of disturbing patterns in the past.
“We have seen concerns with metro supermarkets moving towards higher prices, more plastic packaging and a wider range of gourmet products, while removing cheaper offers,” they said. Yahoo.
“Our residents have made it clear to Woolworths that they are not asking for this change, especially given the many years it took to open a major local supermarket in the area.”
Locals in Alexandria, Sydney’s south, have demanded answers from the supermarket giant after the large supermarket (pictured) was converted into a subway
Residents said they were concerned the Metro store would not offer as much fresh produce or cheaper store brands as a major supermarket.
Ms Moore said the nearest major supermarket was now in Mascot of Marrickville, raising concerns about accessibility for older customers and those without cars.
In a letter to Woolworths CEO Brad Banducci, the mayor wrote that low-income residents could be impacted by a smaller selection of private label and fresh produce.
‘In the current cost of living crisis, I fear that replacing a supermarket with one that sells more ready-made meals, rather than a wide range of own brands and fresh food, will have a direct impact on the already growing food insecurity,” she says. wrote.
A Woolworths spokesperson has confirmed that the supermarket has been converted into a Metro store, with no changes to the ‘size or footprint of the store’.
The spokesperson said the shelf price will remain the same, with customers able to scan a QR code to request products removed during the transition.
“In some smaller supermarkets where we cannot easily expand the store, Metro conversions allow us to adapt the local range by introducing new product lines based on what the local community wants,” the spokesperson said.
He said the number of ‘general merchandise’ products, such as batteries, light bulbs and stationery, had been reduced where sales had been lower.
“We will still have them in stock, just not as many varieties,” the spokesperson said.
The ‘Picked By You’ program allows customers to request to restock an item by scanning the in-store QR code and sharing its details.
A community information session was held at the store on Saturday.
A Woolworths spokesperson has confirmed that the major Alexandria supermarket has been converted into a Metro store, with no changes to the ‘store size or footprint’.
Woolworths’ final report for the 2023 financial year shows sales at Metro stores increased by 21.6 percent, while sales at major supermarkets increased by just 4.7 percent
Woolworths’ final report for the 2023 financial year shows that sales at Metro stores increased by 21.6 percent, while sales at major supermarkets increased by only 4.7 percent. Metro sales represented 2.5 percent of Woolworths’ total sales.
The Woolworths Group, which includes supermarkets and discount retailer Big W, made a profit of $1.62 billion in the year to June, up 4.6 percent from $1.5 billion on a total business basis.
The company behind 995 supermarkets acknowledged this happened as customers faced a cost-of-living crisis in the 2023 financial year.
“While the overall operating environment for the Group improved in F23 compared to previous years, global and local inflation effects have created a new challenge as our customers’ household budgets come under increasing pressure,” the report said.
Sales rose 5.7 percent to $64.3 billion for the year to June 25.
Daily Mail Australia has contacted Woolworths for comment.