Coles flags four-week sales slump as Woolworths Ooshies craze drives shoppers to rival
Despite gaining market share over the past year, Coles reported a temporary dip in supermarket sales as parents flocked to Woolworths to collect Disney figurines.
Coles has reported a short-term slump in supermarket sales over a four-week period, attributing the decline to a competitor’s collectables campaign. The retailer released its full-year results on Tuesday, revealing that while it had grown sales and gained market share against Woolworths in the 12 months to June, growth stalled in July.
The dip was driven by Woolworths’ promotion of “Ooshies,” rubber figurines of Disney, Marvel, and Star Wars characters available for a $30 spend. Coles chief executive Leah Weckert described the moderation in sales as a “temporary impact” that primarily affected physical stores rather than online shopping. The promotion was scheduled to end on Tuesday but concluded a week early due to stock shortages.
The craze has significantly altered consumer behaviour, with a YouGov survey finding that nearly two-thirds of parents changed their shopping habits to collect the items. The figurines, developed by Headstart International, come in generic packaging, prompting trading among children and adults alike. A dedicated Facebook swap group added almost 2,500 members in the past week, bringing its total to more than 45,000.
Secondary markets have emerged, with rare items commanding high prices. An eBay listing for an “ultra rare” Bullseye figurine was set to sell for at least $750, while others are listed for thousands of dollars. One in five adult collectors plans to sell items online, according to the YouGov data.
The phenomenon has not been without controversy. Some schools have banned the toys due to conflict and distraction, while environmental groups have raised concerns about plastic waste. Kirsten Junor, chief executive of Reverse Garbage, stated that the carbon emissions from manufacturing and transporting the figures outweigh any benefit. Woolworths has responded by noting the figures are made from 97% recycled thermoplastic rubber and offering collection bins in some stores.
Financially, Coles reported a 1% rise in net profit to $1.09bn for the year to June. Supermarket profit margins increased from 5.3% to 5.7%. Weckert indicated that Coles plans to continue its own promotional collectible campaigns in the future, despite the recent competitive pressure.
