Checkers
Checkers
  • Recently, Woolworths announced that it will "invest" R1 billion in keeping prices lower over the next two to three years.
  • Checkers used this to hit back at its upmarket competitor in a new ad.
  • For more articles, go to www.businessinsider.co.za.

Checkers this week launched a new TV and online ad targeting Woolworths, which recently announced it will “invest” R1 billion in keeping prices lower over the next two to three years.

Woolworths will in effect shrink its profit margins on some products, and hike prices by less than it had previously planned. The savings will start with chicken prices. The retailer says that the price cuts will help during the pandemic, "because we know our customers are under pressure".

But Checkers is having none of it, and in a new ad took took an unsubtle swipe against its competitor.

The 30-second ad, featuring only wording against a black background, asks viewers a multiple choice question about what their retailer did during lockdown. 

The options being: "Did your supermarket do nothing", "Do nothing for ten months before lowering a couple of prices", or c, "Save their shoppers more than R1 billion throughout the year".

The R1 billion is highlighted, a clear reference to the Woolworths price cut.

"We don't wait for a global crisis to lower our prices," the ad ends. It has been viewed more than 103,000 times on YouTube since Tuesday, and has been flighted on television.

READ | This is how ad agencies in SA continued to make TV ads while under Covid-19 lockdown

In the past year, Woolworths food prices rose by 6.5% on average. This is almost double the average price increases (+3.4%) reported by both Pick n Pay and Shoprite in recent months. 

This did not affect its sales, however: Woolworths food sales jumped almost 11% to R35.8 billion in the year to June.

READ | You could be paying 36% too much for bananas at Woolworths if you aren’t buying organic

View the Checkers ad here:

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