Backlash against Coles and Woolworths is swirling on social media as the supermarket giants record large profits amid a cost of living crisis. But one expert says the anger, and calls for a boycott, are unlikely to have a lasting effect.
"There are people in Australia right now who will have to work two hours to afford a pack of eight razors," her video starts.The video has been viewed more than 1.7 million times. It was posted in early July but has had a recent resurgence as more people take to social media with their anger after the big supermarkets announced their yearly profits.
Miss Mitchell made a follow-up post showing four bulk-sized products — moisturiser, dishwasher tablets, shampoo and sunscreen — costing $135 at Woolworths that she found she could buy for $89.50 by shopping around at discount chains and online retailers. "Maybe it's even more heightened this year because we understand that many families, many communities, are doing it tough," Professor Mortimer said.Some social media posts use humour to criticise the supermarkets' prices.He used the $1.06 billion profit posted by Coles as an example."That would be like your kids spending the entire weekend on the footpath selling lemonade at a lemonade stand, coming in on a Sunday afternoon going 'Mum, I made $41'," he said.
Gary Mortimer says backlash after large profits is not uncommon, but rarely causes long-term damage to companies like Coles and Woolworths. "[But] I think if you asked a reasonable person would they like to insure with an unprofitable insurer or fly with an unprofitable airline, I think they may choose the profitable option."Coles and Woolworths both acknowledged cost of living pressures were affecting their customers."Just last week, Coles announced it has brought down the price of more than 500 staple products for at least three months," a spokesperson said.
"We work hard to earn and maintain our customers' trust. We'll continue to listen closely to our customers."The latest data from market researcher IBISWorld showed Coles and Woolworths controlled 65.5 per cent of the supermarket sector in Australia.
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