Woolworths set to overtake Coles, page-51

I think the extent to which these can be considered moats for woollies is diminishing.
An aldi store sells more per SKU than woollies, and may therefore have more bargaining with suppliers.
Demand moats are weak where customers will readily shop around. With every prime property, there are other properties that are suffering and must remain operating given lease commitments resulting in negative operating leverage. The economies of scale is arguable as well, given aldi can run on lower fixed costs than a woollies store due to less staff and capex. Aldi is so efficient it can still make healthy returns on 3% margins.

If woollies had a true moat it could exercise pricing power, but it cant, that why its "investing in price", the opposite of pricing power.