Source: Herald Sun

Story By: Karen Collier

THE supermarket price wars are dramatically changing the way many of us shop, sales figures show.

Grocery giants Woolworths and Coles say brand loyalty is being eaten away, basics such as milk, eggs and flour are being bought more often, and some shoppers are trading up to more affordable premium goods.

Woolies data released to the Herald Sun reveals that in the immediate aftermath of its price knockdowns, sales for discounted olive oil, toilet rolls, breakfast cereals, pasta sauce, pet food and nappies jumped from 10 per cent to 100 per cent.

Coles merchandise director John Durkan said the chain had experienced double-digit growth on each of its 3500 "Down Down" promotion items.

Woolworths' Benedict Brook said the impact of price cuts ranged from more consumers trying a private label versus a named-brand white bread, to switching from smaller to bulk nappies.

Markdowns for premium pet food and toilet paper were also encouraging some to upgrade from a cheaper mid-range brand because the cost gap had shrunk.

"Knocking down prices and keeping them down is encouraging Aussie consumers to try different products and different brands," Mr Brook said.

Deakin Graduate School of Business retail industry fellow Steve Ogden-Barnes advised consumers to refer to unit costs on shelf price tags to compare value.

The supermarket supremos have discounted thousands of private-label and branded products in the past year, tapping into dismal consumer confidence and an overwhelming motivation to save money.

To read the full story, follow this link: www.heraldsun.com.au/news/grocery-discount-war-changing-household-habits/story-e6frf7jo-1226096364114