IGA Supermarkets is set to launch a $5 million price campaign today to woo customers, but its owner Metcash insists it is not weighing into the aggressive discount war with giants Coles and Woolworths.
Metcash Food and Grocery chief operating officer Silvestro Morabito said the move was a necessary response to changed consumer behaviour, but insisted the group was not aiming to undercut its larger rivals.
"We are not entering a price war," Mr Morabito said.
"We are trying to increase our voice in the market place so we don't get lost in the noise. It's more about trying to show the independent sector exists and delivers value."
The independent sector still has market punch between the big two, with IGA and Foodworks chains employing about a quarter of people in the supermarket industry and accounting for about 15 per cent of sales.
Both are being scrutinised by the Australian Competition and Consumer Commission about their relationship with suppliers and the extent to which the supermarkets exert pressure to protect their own margins.
Mr Morabito said price cutting at IGA would not overtake the stores' focus of championing local roots.
He said the price promotions would be launched in IGA and Super IGA stores today, and include branded products across a range of items.
"Retailers in Australia have done a very good job of educating consumers to only shop for deals and that's not going to go away," Mr Morabito said.
"The consumer is all about value now, but that comes in many different ways.
"Our position as a local retailer is definitely our major focus, but you can't just do that in 2012. You've got to offer value."
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