Supermarkets race forge ahead of profits
Coles and Woolworths, the major supermarket players in Australia, continue to spend huge amounts of money for marketing, of which the results will be shown when both post their sales revenues for the fourth quarter in the week to come.
According to a report by Age, Coles is ahead in the race, spending more than Woolsworth and taking advantage of its sponsorship of MasterChef, a widely popular TV series, while showing off a multitude of meals all below $10 worth.
In the previous fiscal month ending in July 4, Coles is reported to have spent about $1 million each week exclusively on advertising, while Woolworths, Safeway's owner, has levelled its expenses to around $60,000 per week.
Coles has rejected the idea that it has upped its budgets, and states that the two supermarket firms are both solid and equal market players.
Woolworths is set to post its sales revenues for the fourth quarter next week, on Wednesday, while Westfarmers, subsidiary of Coles, will report their sales outputs due on July 26.
In the previous month, NARGA (National Association of Retail Grocers of Australia) said in a statement that the ACCC (Australian Competition and Consumer Commission) was not doing its job to prevent Coles and Woolworths from overwhelming the market.