Woolworths outperforms Coles as value focus pays off, CEO says

Supermarket giant’s sales growth surpasses rival amid cost-of-living pressures

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Woolworths has reported stronger sales growth than rival Coles, with chief executive Amanda Bardwell attributing the result to a renewed emphasis on value, convenience and operational execution in a challenging retail environment.

Woolworths Group has outpaced its chief competitor Coles in the latest sales figures, according to CEO Amanda Bardwell, who said the company’s focus on offering better value, improving store convenience and tighter execution had resonated with cost-conscious shoppers.

The results, reported on Tuesday, did not provide specific sales figures in the statement issued by Bardwell. However, the comparison with Coles is based on Woolworths’ internal assessments and market commentary. The outcome comes as Australian households continue to grapple with elevated living costs, making grocery spending a key battleground between the two dominant supermarket chains.

Bardwell said the strategy was designed to meet customers where they are: “A focus on value, convenience and better execution had paid off for the supermarket giant.” Analysts note that Woolworths has been investing in its loyalty program, everyday low pricing, and store layouts to drive foot traffic and basket size.

The sales outperformance is a notable shift given that Coles had been making inroads with its own “Down Down” pricing campaign and expanded private-label offerings. Both chains have faced intense scrutiny from regulators and consumer groups over pricing practices and supplier relations, with the competition watchdog investigating the sector.

While Woolworths did not disclose profit margins, the sales growth suggests that its volume-led strategy is yielding results. Coles has not yet publicly responded to the comparison. Industry observers caution that a single quarter’s data does not indicate a long-term trend, and that both supermarkets are contending with higher costs from suppliers and logistics.

The broader retail sector is experiencing a slowdown as consumers shift to discount grocers and value retailers. Woolworths’ ability to outperform Coles in this environment may signal that its strategic pivot is gaining traction, but sustainability will depend on continued execution and customer retention.

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Analysis

Why This Matters

  • Impact on shoppers: Woolworths’ focus on value could lead to more competitive pricing and promotions, benefiting consumers.
  • Market dynamic: A shift in market share between the two dominant grocers affects supplier negotiations, industry investment, and employment.
  • Regulatory backdrop: The result comes amid ongoing ACCC scrutiny into supermarket pricing; stronger sales may invite further questions about market power and margins.

Background

Australia’s supermarket sector is dominated by Woolworths and Coles, which together control roughly 65% of the market. Over the past two years, both have faced intense political and consumer pressure over alleged price gouging during a cost-of-living crisis. The competition watchdog launched an inquiry into the sector in 2024, with a final report expected in 2026. Woolworths has been under additional pressure from an independent review of its promotional practices. In this context, any shift in relative performance carries strategic weight.

Woolworths appointed Amanda Bardwell as CEO in late 2024, succeeding Brad Banducci. Bardwell has emphasised a return to retail basics, including store upgrades, improved availability, and sharper pricing. The latest sales data appears to validate that approach, at least in the short term.

Key Perspectives

Woolworths management: The CEO frames the sales growth as evidence that a disciplined focus on value, convenience, and execution is working. The company is likely to continue this strategy and may invest further in price-matching and loyalty programs. Coles and industry analysts: Coles has not yet commented. Analysts will look for Coles’ next sales update to see if the gap is narrowing. Some analysts caution that Woolworths’ gains may reflect temporary promotional activity rather than structural advantage. Consumer advocates and critics: Watchdog groups are likely to view any profit growth—even from sales volume—with skepticism, arguing that the duopoly still has too much pricing power. They will urge regulators to keep up pressure for transparency and fair pricing.

What to Watch

  • Woolworths’ full-year profit margin when reported (likely in February 2027) — volume gains that don’t improve margins could suggest aggressive discounting.
  • Coles’ quarterly sales update, expected within weeks, and any change in its pricing strategy.
  • ACCC final report into supermarket competition, due in 2026, which could recommend structural or regulatory changes.

Sources

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Articles published under the Zotpaper byline are synthesized from multiple source publications by our AI editor and reviewed by our editorial process. Each story combines reporting from credible outlets to give readers a balanced, comprehensive view.