Big W slashes prices amid intense pressure for retailers to prove they deliver value to customers

Big W is slashing prices on more than 2000 products in a move that highlights the pressure retailers are facing to deliver value for customers buckling under the weight of higher cost of living. The Woolworths-owned discount retailer said from Thursday, shelf prices on products spanning skincare, beauty, décor, kitchenware, gaming, toys and technology would drop by about 13.5 per cent. “Our customers are telling us they’re worried about the impact the rising cost of living is having on their household budgets, so we wanted to make a tangible difference every time they shop with us,” BIG W chief commercial officer Christine Faulkner said. “For decades we’ve been known for our incredible value, whether it’s our affordable clothing offering or best price books. “By dropping shelf prices, we’re expanding our commitment to the great value customers already find online and across our stores.” The move comes just days after Perth-headquartered Wesfarmers offered free memberships and six months free delivery through its OnePass program to ease financial pressures on customers. New OnePass customers can take advantage of a six-month trial with no minimum spend at Kmart, Target, Bunnings, Officeworks and Priceline. Worth about $17 billion, Australia’s discount department-store sector is dominated by three behemoths: Kmart, Target and Big W. Big W has, for an extended period of time, lagged behind Kmart, which continues to be the stand-out performer for its parent company Wesfarmers’ stable of businesses. Big W in the past has overhauled its clothing range to offer fewer styes, lower prices and better all-year ranges to arrest the sales decline. While Big W posted a small improvement in sales in the half year — 1.8 per cent — it continued to fall behind Kmart Group’s 3.2 per cent growth.