Food spend hit by power bills

Rising living costs and low wage growth are forcing many households to swap healthy food for cheaper packaged goods, Coles supermarket boss John Durkan says.

RISING living costs and low wage growth are forcing many households to swap healthy food for cheaper packaged goods in a “disastrous” trend, Coles supermarket boss John Durkan says.

Mr Durkan said soaring power prices in particular are a key constraint on spending for consumers who, as a result, are tightening their belts when it comes to buying food.

“At a time when incomes are not growing much, many households are having to confront large price rises in other areas of everyday living,” the Coles managing director said on Thursday.

“We are seeing people really being affected by utility prices across the board. They are having to choose not only what they are going to feed their family but how much of it, which is disastrous as far as I am concerned.”

Mr Durkan said Coles customers, particularly in lower socio-economic areas, are shifting from buying premium products to the supermarket giant’s own range of private label products, and are spending less on fresh produce and fresh meat.

“Undoubtedly this is happening,” Mr Durkan said. “In essence, households are being forced to trade off healthier options for their families.”