Despite Coles and Woolworths being the most distrusted brands in Australia ( https://www.roymorgan.com/findings/9784-supermarkets-trust-and-distrust-woolworths-and-coles-january-2025 ), many people continue to shop there due to several key reasons:
1. Market Dominance & Lack of Alternatives
Coles and Woolworths control about 67% of Australia’s grocery market (https://www.accc.gov.au/media-release/accc-supermarkets-inquiry-moves-into-next-phase-after-hearing-consumer-and-supplier-concerns), making them the most accessible options for many consumers. In some areas, particularly rural and regional towns, they may be the only supermarkets available. ( https://www.abc.net.au/news/2024-09-28/lack-of-regional-supermarket-options-driving-up-grocery-prices/104406008 )
2. Convenience & Location
- Coles and Woolworths have thousands of locations across Australia, making them more convenient than smaller independent grocers.
- Many people prefer the one-stop-shop experience rather than visiting multiple stores.
3. Competitive Pricing & Discounts
- Despite criticism for price hikes, Coles and Woolworths still offer loyalty programs (Flybuys & Everyday Rewards), weekly specials, and fuel discounts, which attract budget-conscious shoppers.
- Their private-label brands (e.g., Woolworths Essentials, Coles Smart Buy) provide cheaper alternatives to name-brand products.
- Some believe that Coles and Woolworths are always cheaper than the alternatives. This is not necessarily true. For best value, customers might pre-order the fruit and veg boxes available at some farmer’s markets. These are pre-packed boxes so customers will not get to choose the contents, but the boxes are typically excellent value and contain an assortment of seasonal vegetables.
$35 Prahran Market veggie box
4. Habit & Brand Familiarity
- Many Australians have shopped at Coles and Woolworths for decades and may not feel inclined to change their habits.
- Some consumers are skeptical that independent grocers or alternative supermarkets (like ALDI) will meet their needs.
5. Online Shopping & Delivery Services
- Coles and Woolworths dominate the online grocery market, offering home delivery and click-and-collect services. This is a crucial factor for busy families, elderly individuals, or those with mobility issues.
6. Loyalty Programs & Perceived Value
- Their loyalty programs offer benefits like Qantas Frequent Flyer points and exclusive discounts, which keeps many shoppers engaged.
- Consumers may rationalize shopping there because they’re earning points or saving on petrol.
7. Lack of Awareness or Actionable Alternatives
- While there is widespread frustration, not all consumers actively participate in boycotts. Some may not be aware of alternative options, while others believe that switching won’t make a difference.
8. Special Product Availability
- Independent grocers and ALDI may not stock certain niche or specialty products that Coles and Woolworths carry.
- Many shoppers rely on the gluten-free, organic, or international food sections that smaller supermarkets might not offer.
Growing Shift Away?
Despite these reasons, there is a growing movement toward farmers’ markets and independent grocers. More Australians are also shopping at bulk food stores and online grocery startups.
Would you consider shopping elsewhere, or do you think Coles and Woolies are still the best option despite their reputation?
