Supermarket wars: Coles slashes prices to ease cost of living, matching hundreds of Woollies cuts

Coles has followed in the footsteps of rival supermarket Woolworths by slashing prices on hundreds of popular grocery items in a bid to ease cost-of-living pressures for Australian families.

Just two days after Woolworths revealed it would reduce the cost of almost 400 essential products, with average savings claimed at 10 per cent, Coles announced it had lowered the prices of more than 680 items across its stores and online, claiming average savings of 21 per cent.

“We know customers are on the lookout for great value all year round, and we remain focused on delivering that through thousands of weekly specials, including half-priced items as well as ‘down down’ products across popular brands and exclusive Coles Own Brand products,” a Coles spokesperson said.

“We are continuing to invest in value and will have further savings to announce for the Winter months.”

The company said from Wednesday, customers will be able to save on more than 680 ‘down down’ products in-store and online, with average savings of 21 per cent.

It also has more than 1000 products available at half price, including many weekly staples.

“Our promotions reflect seasonal availability to reward customers with savings on their favourite products, including meat and seafood, pantry, bakery, frozen, health and home care,” the spokesperson said.

Flybuys members can also access personalised offers, discounts, bonus points, and even free items through the Coles app, while shoppers can save up to 20 per cent on fresh produce through the supermarket’s “I’m perfect” range, which features cosmetically imperfect fruit and vegetables that still meet taste and nutrition standards.

Coles’ liquor arm, Liquorland, is also matching lower prices from competitors on identical items in the same state, with terms and conditions applying.

The announcement comes in direct response to Woolworths’ cost-saving campaign, set to begin Wednesday, which includes permanent lower shelf prices on family favourites like chicken schnitzels, Greek yoghurt, frozen berries, and 2L Coca-Cola bottles.

Woolworths CEO Amanda Bardwell said shoppers can expect an average 10 per cent drop in prices across the 400 discounted products, potentially saving a family spending $150 each week around $15.

“Individually, each lower shelf price might not seem like a dramatic difference, but they will add up to real savings,” Ms Bardwell said.

“This isn’t just a short-term promotion, it’s a long-term commitment to delivering genuine, dependable value for our customers.

Ms Bardwell said the initiative would provide “meaningful relief” at the checkout and indicated the company planned to expand the program, with the current savings in place until at least 2026.

The twin announcements come as the retail giants face increasing public and political scrutiny over grocery pricing, with many Australians struggling to manage rising household costs.