Coles undercuts local grocers

Local fruit and vegetable shops saw a sharp drop in patrons last week as a large retailer introduced its newest promotion.

Super Specials is part of a Coles campaign which started on January 30 and introduced price cuts of up to 50 per cent on 12 selected fruit and vegetable items.

Consequently, smaller grocers in close proximity to Coles Broadway experienced a drop in customer numbers.

“We have noticed it is a little quieter than normal,” said a fruit vendor at Galluzzo Fruit Market in Glebe. “There has not been a drastic influence from the price changes at Coles, but we will have to wait and see.”

The vendor said his high quality produce ensured he remained competitive with Coles. “We have a very loyal following. People tell us the quality is what brings them back,” he said.

Coles General Manager for Fresh Produce, Greg Davis, said the price cuts improved business.

“We are delighted with the reaction from customers to our new fresh Super Specials,” he said. “Customers can trust Coles to deliver quality fresh food which really does cost less.”

Mr Davis assured consumers that the quality of produce remained high even with price cuts. “I am confident that the result for customers…is the best quality, best value and freshest fruit,” he said.

Other local competitors such as Harris Farm Markets and IGA Glebe conceded there was a recent drop in numbers of customers.

However, a retailer from Harris Farm Markets said his business and other local fruiterers would remain competitive as they offer better quality than Coles.

“I think we’ve got better quality and customers know that,” he said. “I think we can stay on top because of our quality.”

He said Harris Farm offer cheaper prices than Coles on certain fruits and vegetables, another factor which kept customers.

A grocer from IGA Glebe also said his business experienced a recent drop in numbers of customers. However, like other local grocers, he said the flow of consumers to Coles would not be sustained.

“I don’t think Coles will be able to keep up what they are doing,” he said. “We offer diversity and competitive prices as well and that is what keeps our business thriving.”

Coles Broadway prices “Super Special” items, February 1:
• Australian white grapes: $2.65/kg.
• Blueberries: $2.85/punnet.
• Australian truss tomatoes: $2.48/kg.
• Australian nectarines: $2.67/kg.
• Australian plums: $2.75/kg.

A local grocer’s prices, February 1:
• Australian white grapes: $5.99/kg.
• Blueberries: $3.50/punnet.
• Australian truss tomatoes: $9.99/kg.
• Australian nectarines: $3.99/kg.
• Australian plums: $3.99/kg.

By Fabian Di Lizia