Supermarket industry insiders reveal how Coles and Woolworths profit off rising prices

In short: Emails show how Coles increases the prices you pay for products in return for one-off payments from its suppliers. Shoppers 'getting screwed' The emails show Coles received a one-off payment from a multinational supplier for allowing a price increase, then passed on this cost to customers. The price increase of around 5 per cent, which the supplier sought to cover its rising costs, was initially dismissed by the Coles buyer based on "customer needs" and the "competitive environment". The Coles buyer said the price increase would cost the supermarket hundreds of thousands of dollars, and that if the supplier wished to proceed, the supermarket would need compensation to close this so-called "gap". Woolworths demanded to 'share' in price increases Another industry insider told Four Corners that about 18 months ago, Woolworths began trying to increase its own profit margins, using economy-wide inflation as cover.