Coles boss Leah Weckert.
“We are very much guided by what our customers tell us. And at the moment,about 50 per cent of them are saying they are eating more at home,” she said.
“They are going to be looking to economise into a lot of areas,and that will play into the value tier[of products].
“For a lot of customers,what they will be making decisions on is where are the areas where they want to bring a few special touches to their celebrations.”
The retailer says it is giving consumers room to “trade up” and “trade down” their spending depending on their preferences,and is spruiking a range of options from a $4 bottle of savignon blanc to $70 bottles of champagne and a range of exclusive desserts and hams.
Weckert said on Thursday that signs continue of grocery price inflation moderating,and prices across red meat and fresh produce are now better than at this time last year.
Spending data from the CommBank Household Spending Insights report from September supports the idea that households are tempering their spending on fine dining. Hospitality spending was up 2.7 per cent in September,according to analysis of data from 7 million customers,but the annual rate of growth is steady at 3.4 per cent.
The jump in food spending for the month largely came from fast food,while reduced spending in cafes,breweries and wineries and with caterers offset the gains.