The Reasons Your Supermarket Prices Are SKYROCKETING

Cost of living pressures are mounting for many Australians and supermarkets have warned more pain is coming to your weekly grocery bill.

Labor shortages, the cost of raw materials and the rising cost of fuel and utilities are some of the factors influencing the price of groceries.

Coles chief executive Steven Cain said at the Australian Global Food Forum this week that Australia was experiencing a labor crisis in many sectors.

“It’s exacerbated by what’s going on with Covid and the flu, our absenteeism rate is twice normal today with Covid and the flu, and turnover is increasing in most industries,” he said.

“I spoke to one of our store managers last week and asked him what the biggest challenge was.

“He said it was definitely trying to find the right people with the right skills, but he lost one in the shop that becomes an $80,000-a-year dishwasher.”

Camera iconColes CEO Steven Cain says Australia is facing a labor crisis. NCA NewsWire/James Gourley Credit: News Corp Australia

Mr Cain said food suppliers also pushed for further price increases. “We have received five times as many requests for price increases as last year. Five times,” he says.

A Coles spokesperson told NCA NewsWire on Thursday that the supermarket’s focus was on keeping costs down for families.

“We realize there are a number of factors driving inflation for all retailers, including increases in raw material costs, increases in energy prices and freight costs, but there are a number of ways we deliver value to customers,” they said. †

It includes weekly specials and other offers such as Flybuys points.

“This fiscal year, we have reduced prices on more than 2,000 items in our range of more than 20,000 products to date,” said the spokesperson.

“Customers who purchase their My Weekly Specials items can save an average of $65 each week on their basket.”

Woolworths chief executive of fruit and vegetables Paul Turner said heavy rains and little sunlight in Queensland had reduced the supply and quality of zucchini, beans and broccolini.

COLES WOOLWORTHS
Camera iconWoolworths says some produce is in short supply due to heavy rain in Queensland. NCA NewsWire/Jeremy Piper Credit: News Corp Australia

The same was true for vine, gourmet, cherry and solanato tomatoes, he added.

“We are still seeing challenges with the supply of lettuce and berries, so although the new crops have been planted, it will take a few weeks for stocks to stabilize again,” he said.

“At the moment apples and citrus are at their peak, and pears and laundered potatoes are plentiful and of great value to our customers.”

Mr Turner said the Hass avocado season is now underway and Woolworths has cut prices on more than 300 winter essentials.

Woolworths has about 5000 different products on sale every week.

In May, Woolworths cut the price of more than 300 winter products until August, including roast pork, soups and cold and flu medicines.

Woolworths has also recently introduced more than 650 own-brand products into its low-price program, including flours, sugars and snacks.

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Camera iconALDI insists it is cheaper than its competitors. NCA NewsWire/Paul Jeffers Credit: News Corp Australia

Third quarter results in May showed that Woolworths vegetable prices showed inflation, while fruit deflated slightly in the first three months of the year due to apple and avocado prices.

Woolworths reported overall average price inflation of 2.7 percent.

For the same period, Coles reported inflation of 3.3 percent.

In ALDI Australia’s 2022 price report published last month, the company said a basket at ALDI was at least 15.6 percent cheaper than other supermarkets, meaning an average family could save $1555 a year.

“Our research shows that the majority (88 percent) of Aussie shoppers want to change their spending in the coming year, starting with finding the best deals out there,” said Oliver Bongardt, ALDI Australia’s general manager. report.

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