Woolworths increased prices on multiple products within days of launching a price freeze promotion covering 300 “family staples” on 1 May, according to pricing data compiled by comparison website CW Scanner. The analysis revealed that the supermarket raised prices on at least four key items during the three-month promotional period, including a 33% markup on 350g packs of chicken breast fillets that went from $9 to $12 on 5 May before alternating between the two prices throughout the promotion.
Other products affected included a 420g can of Mexican Style 3 Bean Mix, which nearly doubled in price from 60c to $1 on 17 June before being reduced back to 60c on 17 August. A 12-pack of cinnamon donuts increased from $3 to $3.50 on 6 May and later returned to $3 on 18 August. Woolworths 2kg bags of washed potatoes also continued their existing high-low pricing pattern between $6 and $8 during the promotional period. The supermarket declined to comment on the analysis but is understood to have justified the increases by distinguishing between promotional prices and standard shelf prices.
Woolworths chief executive officer Amanda Bardwell announced the price freeze on 30 April, stating the company would freeze shelf prices on 300 staples to help customers affected by inflation. She promised that “the shelf price you see on these items today is the most you’ll pay for the next three months” and committed to investing to absorb supplier costs. Marketing expert Professor Jana Bowden from Macquarie University characterised the practice as misaligned with consumer expectations of a price freeze, noting that shoppers lack the information needed to track pricing variations over time.
The pricing analysis emerges amid increased scrutiny of supermarket pricing tactics. Woolworths is currently awaiting a federal court verdict in a case brought by the Australian Competition and Consumer Commission alleging the company misled shoppers through fake discounts on its “Prices Dropped” campaign. Choice, a consumer advocacy group, highlighted that people are confused by supermarket pricing and lack transparency to understand how retailers determine standard prices.
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