Woolworths implemented price increases on at least four products during a three-month Price Freeze promotion that commenced on 1 May, according to pricing analysis provided by comparison website CW Scanner to Guardian Australia. The increases included a 33% rise in the price of deli chicken breast fillets, which climbed from $9 per kilogram to $12 per kilogram on 5 May. A 420-gram can of Woolworths Mexican Style 3 Bean Mix saw its price nearly double from 60 cents to $1 on 17 June before returning to 60 cents on 17 August. Additionally, cinnamon donuts increased from $3 to $3.50 on 6 May, and potatoes continued a high-low pricing pattern between $6 and $8 throughout the promotional period.
Woolworths defended the price adjustments by characterizing the previous prices as temporary promotional rates rather than standard shelf prices. A company spokesperson stated that the Price Freeze guarantee applied only to shelf prices existing at the start of the promotion and that ending temporary promotions did not constitute a price increase. Chief Executive Officer Amanda Bardwell had announced the initiative on 30 April as a measure to assist customers contending with inflation-driven cost pressures, promising that shelf prices on 300 staple items would remain unchanged for three months.
Marketing experts and consumer advocacy groups questioned the company’s interpretation of the Price Freeze commitment. Jana Bowden, a marketing ethics chair at Macquarie University, characterized the approach as inconsistent with consumer expectations of a price freeze and noted that ordinary shoppers lack visibility into historical pricing patterns required to verify such claims. Bea Sherwood from consumer advocacy group Choice highlighted ongoing consumer confusion regarding supermarket pricing transparency, stating that shoppers cannot reasonably be expected to track price variations and determine standard rates.
The pricing controversy emerges amid broader regulatory scrutiny of Woolworths and competitor Coles. Woolworths currently faces a federal court case brought by the Australian Competition and Consumer Commission, which alleges the supermarket misled consumers through effectively fraudulent discounts on its Prices Dropped campaign.
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