ABC Coverage on price increases at Coles and Woolies.

Coles specific tactic:

• Coles received a one-off payment from a multinational supplier for allowing a price increase, which it then passed on to customers.
• Initially, the Coles buyer rejected the supplier's price increase of around 5 per cent, citing "customer needs" and the "competitive environment".
• Negotiations began shortly after the rejection, with the Coles buyer stating that the price increase would cost the supermarket hundreds of thousands of dollars and that compensation would be needed to close the "gap" created by the increase.
•  Coles took the $25,000 in promotion money, and passed on the full price increase to customers.