Thursday, July 4th, 2013 - Roy Morgan Research
Less than half of Coles customers believe the ‘Down Down’ supermarket has low prices--but ti's still two points ahead of Woolworths’ customers.

Almost 45% of Coles customers believe the ‘Down Down’ supermarket has low prices—just two points ahead of Woolworths’ customers, the latest supermarket survey results from Roy Morgan Research Single Source show.

For the last five years, advertising campaigns from the two supermarket giants have focused on price, and this is reflected in the overall increase in association with ‘Has low prices’. Coles in particular has fixated on price, with the omnipresent big red finger and Curtis Stone’s $10 family meals (ta-da!).

From 2009 to the start of 2012, the proportion of Coles’ customers who said it has low prices jumped from around 1 in 3 to 1 in 2, while Woolworths hovered just over 40%. However in the last year Coles has fallen back and the rivals are now again almost on par.

Aldi still has by the strongest association with low prices in the industry, with around 9 in 10 of its customers saying the supermarket ‘has low prices’.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“Despite the strong five-year gains overall, still less than half of each supermarket’s customers associate it with low prices. The successful Coles ‘Down Down’ campaign that has aired for three years, would have played a considerable part in moving low price perception upwards among their customers, and been the point of difference that allowed Coles to pull ahead of Woolworths for cut-through of low prices.

“But perhaps the effectiveness of the ‘Down Down’ campaign has come to an end, with consumers tuning out the message after years of exposure: the latest March 2013 results reveal there is once again only a small gap between Coles and Woolworths customers, primarily due to a decline shown by Coles rather than any ground made by Woolworths.

“Satisfaction levels amongst Coles customers are similarly trending downward, indicating a strong relationship between satisfaction and perception of low prices.

“It remains to be seen whether Coles’ recent advertising campaigns involving promotional competition this will have any effect on reversing the ‘one direction’ Coles is heading in.”


Source: Roy Morgan Single Source (Australia), Apr 2003 – Mar 2013 12 months average n=8,425

Base: Main Grocery Buyers 14+

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Roy Morgan Research

Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332


Less than half of Coles customers believe the ‘Down Down’ supermarket has low prices--but ti's still two points ahead of Woolworths’ customers.



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