Say Goodbye To Super Cheap Roast Chooks
Coles and Woolworths have quietly increased the price of their roast chickens from $8 to $9 in what is being described as an “industry-changing event” that could be a sign of the “race to the bottom” coming to an end.
Bank of America Merrill Lynch analyst David Errington said in a note on Wednesday 28 March that Coles tested the slightly higher price at some of their regional supermarkets a few weeks ago which prompted Woolworths to follow in their footsteps.
After Coles continued to roll out the price nationally, so did Woolworths.
Mr Errington said, “A $1 price move is material but more importantly to us is a likely symbol that Coles and Woolworths are now looking at ways to improve profitability without compromising competitiveness.”
“From our estimates, at $8 no supermarket makes any profit from selling barbecue chickens and Woolworths sells around 50 million chickens annually and Coles sells just over 40 million.”