Jefferies flags pricing risk for Australian grocers Woolworths, Coles

Coles

30/09/2025 20:59

** Jefferies' Supermarket Inflation Index for Australia shows overall inflation rose to 6.2% in the September quarter from 5.2% in the June quarter, propelled by fresh goods and some packaged goods such as tobacco

** Flags heightened pricing risk for top grocer Woolworths WOW.AX, noting heavier price investment vs peer Coles COL.AX to restore consumer perception and revive sales momentum

** Brokerage remains cautious that a persistent pricing gap between the firms could trigger more aggressive pricing and significant industry disruption

** Jefferies says its data indicates COL discounts more products than WOW but less deeply

** In September, WOW slipped 7.3%, its worst September in five years while COL dipped 2.5%, slightly more than its average September decline of 2.3%

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))