Coles is reducing its product range by at least 10 per cent, a move that has sparked public backlash and renewed discussions about the role of supermarkets in the cost-of-living crisis.

In cutting the range of items on offer Coles is moving closer to Aldi and Costco’s strategy to grow exclusive brands and limit product range.

The goal is to boost profitability by reducing costs, increasing sales, and increasing control over the supply chain.

Coles is unlikely to cut traditional brands, especially those from companies with significant market power like Coca-Cola or Nestle. In a battle between giants, the status quo is likely to prevail.

Smaller suppliers are likely to bear the load as they struggle to renew contracts and face increased competition from home brands.

To fully understand the reasons behind this move and its impact on the cost of living, insights from psychology, finance, and supply chain management come in handy.

The Coles move is all about profitability.

Over the past decade, competition in the Australian supermarket sector has intensified. Coles’ market share declined from 31% to 25% between 2013 and 2023, while

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