Consumer advocacy group Choice exposes how major Australian supermarkets, Coles and Woolworths, are reducing product sizes while keeping prices steady, a practice known as ‘shrinkflation’, amidst the country’s cost-of-living crisis.
In Australia, an investigation by the consumer advocacy group Choice has brought to light the practice of “shrinkflation” within major supermarkets, notably Coles and Woolworths. Shrinkflation is identified as the process of reducing product sizes while maintaining or increasing the prices, effectively making consumers pay more for less. Products such as hot cross buns, chips, and cereals have been highlighted as examples where this trend is occurring. Specifically, Coles was found to have decreased the size of its home-brand cereal packs by 65g but retained a price of $4.50, resulting in a 13% increase in the price per serve. Similarly, Woolworths has reduced its corn chips pack size by 25g without adjusting the price downwards, which corresponds to a 14% rise in cost per serve.
The companies have attributed these changes to various factors, including transitioning manufacturing facilities and escalating supplier costs. However, these alterations have raised concerns amidst Australia’s ongoing cost-of-living crisis, underlining the financial strains placed on consumers who may not immediately notice they are receiving less value for their money.
This practice of shrinkflation has prompted calls for greater transparency and regulatory measures within the supermarket sector, with advocacy groups emphasizing the need for clear communication from supermarkets regarding changes in product sizes and pricing. Additionally, The Greens party has proposed legislation aimed at dismantling big supermarket chains to promote accountability and fair trading practices.
The issue focuses attention on the broader debate surrounding consumer rights and the need for increased oversight in retail practices to safeguard against hidden price increases and to support consumers in making informed purchasing decisions.