Coles’ supersized range targets Costco shoppers

Coles is taking a shot across the bows of warehouse retailer Costco with the launch of a range of household grocery products in supersized volumes.

While Coles has launched the Big Pack Value range as a means of helping families reduce their grocery bills by buying in bulk, the nuanced comparison with Costco is clear in an email circulated among media announcing the new house brand.

“Making bulk buying easy, with no memberships and no need for a destination shop, Coles’ Big Pack Value range has plenty of choice,” the cover letter said. Consumers shopping at Costco can buy bulk packs but must pay a nominal annual membership for the right to shop there and there are a limited number of Costco stores in Australia, only in major metropolitan cities.

However, it may be just a trial by Coles, with the 44 products released under the label on sale for an unspecified “limited time”.

Coles says the bulk deals save up to 60 percent when compared to the price of regular-size packs. Examples include a 2kg tub of Bega Peanut Butter for $16.50 which is 48 percent cheaper than 10 x 200gm jars at $3.20 each, and Obento Panko Breadcrumbs in a 1kg pack for $5 compared with $2.30 for a 200gm packet.

Coles GM for grocery, Leanne White, said the supermarket company believes offering some of its popular products in bulk is a way to help customers save time and money on their weekly grocery shop.

“Our Big Pack Value range is helping feed even the largest of families on a budget with significant savings on 44 family favorites in bulk sizes – everything from snacks to sauces, coffee, and dinner staples like a giant 1.32 kilo tin of Milo, a massive 2 kilo tub of peanut butter, and 18 pack of Maggi 2 Minute Noodles.”

“Buying in bulk works really well for families who are buying the same products regularly so can stock up on their favorites at a cheaper cost overall. Some of the products can last an average family a couple of months, which means customers save time shopping in-store, while managing the family budget,” she said.

Participating brands include Darrell Lea, Starbucks (Nestle), Smith’s, Pascall and The Natural Confectionery Co (Cadbury), Kewpie and Bega.

The savings are calculated on the basis of comparable unit pricing.