SYDNEY, March 6, 2026, 18:34 AEDT
Coles Group Ltd faces renewed questions about its plans for digital shelf labels, after telling Inside Retail on Thursday that the system is still being tested at 11 sites and hasn’t expanded further yet. The company stopped short of committing to steer clear of dynamic pricing should the labels go nationwide, according to the trade outlet. 1
It’s suddenly relevant: electronic shelf labels—those small digital screens replacing paper tags—give retailers the power to update prices in real time. Allan Fels, former ACCC chair, told ABC News this could “open the door to personalised pricing.” Chad Gates, who runs pricing software group Pronto Software, warned that shoppers might push back if they start to feel “manipulated”. 2
Australia’s rules around pricing remain flexible for now. According to the ACCC, retailers can use surge or dynamic pricing as long as they’re upfront about what customers are being charged and steer clear of any false or misleading statements. But things get tougher from July 1—Treasury points out that major supermarket chains will be hit with a fresh ban on charging too much for groceries compared with supply costs, with possible fines up to A$10 million or 10% of their turnover. 3
Timing is crucial for Coles. Just a week ago, the company posted first-half sales revenue of A$23.618 billion, EBIT before significant items at A$1.231 billion, and a reported net profit of A$511 million—a drop of 11.3%. The board put forward a 41-cent interim dividend. On the outlook front, Coles noted supermarket sales climbed 3.7% in the first seven weeks of the third quarter, or 5.3% once tobacco is stripped out. CEO Leah Weckert said “value remains front of mind” for customers. 4
Woolworths beat forecasts with its first-half profit last week, the boost coming after price cuts aimed at attracting budget-conscious shoppers. The retailer’s moves highlight the intense focus on value as Australians grapple with cost-of-living strains—Coles and Woolworths, together, control roughly two-thirds of the grocery market. Woolworths has rolled out around 17 million electronic shelf labels across more than 600 stores in Australia and 170 in New Zealand. Bunnings, for its part, told Inside FMCG it doesn’t use surge, dynamic, or personalised pricing—and has no intention of introducing them. 5
Coles hardly qualifies as a minor experiment. According to its website, the group operates upwards of 1,800 retail locations around the country, including more than 840 supermarkets. The workforce tops 115,000, and supplier count is north of 8,000. A pilot—even a small one—takes on significance given those numbers. 6
The shelf-label fight arrives as Coles is already locked in a battle with the ACCC in Federal Court over 245 Down Down products. The regulator claims certain items sat at their standard price for months, only to spike for a short spell and then appear on “discount.” Coles maintains the price drops were real, arguing previous price hikes came from supplier inflation, freight, utilities, and other costs. A loss could bring Coles a hefty fine and deal another blow to consumer trust. 7
Pressure isn’t letting up. The ACCC’s supermarkets inquiry flagged cracks in a sector where Coles and Woolworths hold sway, saying consumers and suppliers aren’t getting a fair shake. Among its recommendations: tougher rules around discounts, supermarket prices to be published online, and better data feeds to help third-party tools compare prices. 8
