NATIONAL supermarket retailer Woolworths has lowered prices on 400 ‘essential and favourite’ items from today, effective until the end of the year.

The company says the campaign is designed to “deliver more value for customers every time they shop.”

Woolworths shelf prices of products on the list have fallen by an average of ten percent, it said in a statement.

The discounts come after both major supermarket retailers were accused over the past 18 months of price gouging, manipulating suppliers and working against the expansion interests of other retailers via inquiries conducted by the Australian Competition and Consumer Commission, ACTU and other groups.

Coles and Woolworths suffered reputational damage as public anger over grocery prices and concerns over the treatment of suppliers sparked government and regulatory inquiries.

After a year-long review, ACCC found in March that Australia’s major chains are among the most profitable supermarket businesses in the world, and that they increased prices during a cost-of-living crisis to boost profits. Australia’s supermarket sector was one of the most concentrated among comparable economies, described by the ACCC as an oligopoly.

Research house Roy Morgan noted earlier this year that the supermarket giants had become some of the most distrusted brands in Australia amid “allegations of price hikes and profit-driven strategies.”

400 discounted items, but fresh meat ‘staples’ absent

While Woolworths’ latest Lower Shelf Price list does cover a large range of grocery, soft drinks, dry goods and other items, red meat is conspicuously absent. That’s despite Woolworths claims the “Lower Shelf Prices (cover) the products we know customers regularly shop for.”

Near-record high April domestic wholesale beef prices could be part of the reason. Trimmings (ground beef), alone, has shot up in value this year, in response to growing international demand. In essence, domestic trimmings are worth the current export price, minus sea freight.

The solitary fresh red meat item (if corned meat could be included in the ‘fresh’ category) is corned silverside, now selling for $10/kg, down from $11/kg. In comparison the list of 400 Lower Shelf Price items includes nine separate digital device charging cables. The only fresh white meat item on the list was chicken schnitzel 600g (was $10.50, now $9, a saving of $1.50 or 14pc).

The company did say that “hundreds more products will have lower shelf prices in the coming weeks and months.”

Rival Coles has countered Woolworths latest moves by pointing to its autumn discounts already in place across more than 680 ‘Down Down’ products both in-store and online, claiming average savings of 21pc. Current ‘Down Down’ offers in Coles’ chilled fresh meat cabinet include rump medallions 300g – $11 (down from $12.50, a 12pc saving); Coles Graze grassfed scotch fillet 250g – $11 (down from $13.50, down 11pc); and lamb shanks 2pk – $11.00 (down from $12.50, saving 12pc).

One difference is that Woolworths has committed to its latest price drops until the end of the year.

Back in February, Woolworths new chief executive officer Amanda Bardwell announced a $400 million cost-cutting program for the company, with some of those savings earmarked to pay for the latest price cuts on about 400 products.

Ms Bardwell acknowledged that managing household budgets continued to be challenging for supermarket customers.

“Customers consistently tell us they need more value from their shop, and that they expect us to do more to help,” she said.

“Today marks the start of a real, tangible change customers will see on the shelf prices of hundreds of products when they shop with us, both in-store and online. And it’s just the beginning.”

“This isn’t just a short-term promotion; it’s about lower shelf prices on the products we know customers regularly shop for, and providing genuine, lasting and dependable value they can count on.”

Individually, each lower shelf price might not seem like a dramatic difference, but they would add up to real savings, Ms Bardwell said.

Products included under the Lower Shelf Prices campaign will still be eligible to be part of Woolworths weekly specials program, she said.

Families spending $150 on their weekly shop could now save on average around $15 a week when buying Lower Shelf Price products, Woolworths claimed.