Woolworths to make price cuts on premium products

File: Woolworths is committing R1-billion over the next three years to make the prices of its premium products more affordable. Reuters/Mike Hutchings

JOHANNESBURG - You could soon be paying less for your Woolworths chicken.

The product will be one of the retailer’s first products to see a potential price cut in a new move by the company to bring prices down.

The company is committing R1-billion over the next three years to make the prices of its premium products more affordable.

READ: Woolworths reports rise in food sales, fall in annual earnings

The move puts Woolworths in direct competition with companies like Shoprite and Pick n Pay.

The retailer says the COVID-19 crisis helped it to identify further efficiencies in its value chain and to cut costs.

Those savings can now be passed on to the consumer.

READ: Woolworths offers drive-through service to help shoppers avoid stores

Woolworths says it will invest R750-million of this money in its food business over this period.

The company's food prices rose at an average rate of 6.5 percent last year.

Average price increases at both Pick n Pay and Shoprite were about half of that over the past six months.

Source
eNCA