Australian Grocery Prices Push Shoppers to Hunt for Bargains as Coles Faces Stronger Competition
Aadhya Tibrewal, Jadetimes Staff
Australian grocery prices are changing how households shop, with customers looking across different supermarkets for better deals. An update from Coles on 30 October 2026 showed how this careful spending is putting pressure on one of the country’s biggest grocery chains.
Coles said stronger promotions from competitors had affected its sales growth in the early weeks of its second quarter. Customers were comparing prices, using discounts and making greater use of loyalty programmes to manage their household budgets.
The update shows why supermarket competition matters beyond company results. For a household trying to control its weekly expenses, even small price differences can influence where it shops.
Shoppers are spreading their purchases across stores
Coles chief executive Leah Weckert said customers were continuing to visit its supermarkets but were increasingly dividing their shopping between retailers.
This means a supermarket may still attract visitors without receiving their entire weekly grocery spend. A customer might buy some products at Coles, then purchase other items from a competitor offering a better price.
For example, a household could choose one shop for discounted pantry goods and another for fresh food. This is an illustration of how dividing a shopping basket works, rather than a description of any individual customer’s purchases.
The challenge for retailers is clear: getting someone through the door does not guarantee that they will buy everything there.
Sales increased, but growth disappointed
Coles reported total group sales of about A$11.21 billion for the 13 weeks ending 27 September 2026. This was an increase of 2.2% compared with the same period a year earlier.
Its supermarket sales rose 3.6% to about A$10.32 billion. However, sales at comparable supermarkets grew 2.7%, down from 4.6% in the corresponding period a year earlier.
Comparable sales help show how existing stores are performing, without allowing new store openings to explain the whole increase.
The figures therefore require a careful reading. Coles was still recording sales growth. The concern was that its performance was weaker than expected and that growth slowed further in the first four weeks of the next quarter.
Online shopping offered a stronger result
One brighter part of the update was online grocery shopping.
Coles reported that supermarket online sales increased 22.9% to about A$1.62 billion during the quarter. Online orders accounted for 15.7% of supermarket sales.
This showed that different parts of the business were moving at different speeds. Strong online growth did not remove the pressure on physical stores, but it provided an important source of sales.
The figures do not establish why every customer chose to shop online. They do show why it is useful to look beyond a company’s total sales number when judging its performance.
Coles is putting more attention on value
Coles is responding by strengthening its lower-price offer.
Its Every Day Price programme promises to keep prices on selected products lower for at least six months. The company is also expanding its exclusive product range and promoting its Christmas offering.
A longer price commitment can help a household plan purchases with greater confidence. However, it applies to selected products, rather than every item sold by the supermarket.
Shoppers still need to look at the full cost of their basket. A good price on one familiar product does not automatically make every purchase in the same store the cheapest option.
Competition is making customer loyalty harder to keep
Coles faces competition from other supermarket chains, including Woolworths and Aldi. Its latest update suggests that customers are paying close attention to the offers available elsewhere.
This creates a difficult balance for supermarkets. Lower prices and stronger promotions may attract customers, but those offers also need to support a sustainable business.
The important question is whether a retailer can persuade shoppers to return regularly, rather than only when a particular product is discounted.
For households, the practical benefit of competition is having more offers to compare. Whether an offer saves money still depends on what the person needs, the quantity purchased and the total amount spent.
Higher costs are adding pressure
Coles also warned about increased fuel-related costs and said it expected first-half supermarket earnings before interest and tax to remain broadly in line with the previous corresponding period.
In simple words, the company expects that measure of supermarket profit to be roughly unchanged.
Sales and profit are different. Sales measure the money received from customers. Profit depends on what remains after relevant costs are taken into account.
A supermarket can therefore sell more while still facing pressure on its earnings.
The coming months will test the response
Coles shares fell 7.7% to A$21.66 on 30 October after the update. The market reaction reflected concern about its sales momentum and outlook.
For shoppers, however, the more immediate issue is what happens to the cost of their weekly groceries.
The coming months will show whether Coles’ lower-price programme and other offers bring more spending back to its stores. Its latest results make one point clear: Australian households are choosing more carefully, and supermarkets have to work harder to win their business.
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