In the current economic climate, where every dollar counts, Australians are becoming increasingly savvy about where they shop for their groceries. With household budgets feeling the pinch, it’s more important than ever to find ways to stretch the dollar further.
CHOICE’s comprehensive analysis, based on the latest mystery shop data, has once again crowned ALDI as the reigning champion of low-cost groceries. Since CHOICE’s surveys began in 2015, ALDI has consistently offered the most affordable prices, leaving competitors Coles, Woolworths, and IGA trailing in its wake.
As of March 2024, CHOICE has observed some interesting trends in supermarket pricing. Woolworths has seen a 1.5% increase in the cost of a standard grocery basket, while Coles has managed to reduce its prices by 2.1%. ALDI has shown a modest decrease of 0.3%, further cementing its position as the budget-friendly option for shoppers.
CHOICE’s recent survey put a spotlight on a mid-week top-up shop of fresh foods, responding to consumer feedback for more insights into the cost of perishables. The results were telling, with ALDI offering the most competitive prices for a selection of fruits, vegetables, dairy, and meat.
The pressure on Australian households is undeniable, with our quarterly Consumer Pulse surveys revealing that 96% of Australians have seen their bills and expenses increase over the past year. The cost of food and groceries remains a significant concern for 84% of households, although this is a slight improvement from previous surveys.
As CHOICE wraps up the first year of our quarterly basket surveys, a few key trends have emerged:
- Coles and Woolworths are neck and neck in pricing, with only minor differences between them.
- Taking advantage of specials can lead to substantial savings.
- ALDI continues to offer the lowest prices, provided you have access to one of their stores.
CHOICE’s detailed price analysis found that a basket of 14 commonly bought grocery items, including staples like milk, bread, sugar, pasta, tea bags, and two fresh fruits and vegetables, cost the least at ALDI, with a price tag of $51.36. This is in stark contrast to the $74.90 you’d pay at IGA for the same items.
When it comes to specials, both ALDI and Coles have seen a decrease in basket costs since CHOICE’s first survey in March 2024, while Woolworths has experienced an increase. Without specials, the picture changes slightly, but ALDI’s prices remain consistent, offering the best value for money.
It’s worth noting that IGA, as an independent grocery brand, has more variable pricing due to the franchise model and store size differences. However, CHOICE has observed a considerable drop in IGA’s average prices for the basket, from $78.95 in June to $74.90 in December.
When comparing regional and capital city prices, CHOICE found that capital city shoppers generally pay less at the three biggest supermarkets, with IGA being the exception, where city dwellers pay slightly more.
The state-by-state analysis shows that Western Australians often pay more for their groceries, with notable price differences for staple items like apples. Victorians, South Australians, and Tasmanians enjoy the best deals at Woolworths, ALDI, and Coles, respectively.
CHOICE’s survey also highlighted some anomalies, such as the consistent $0.15 price increase for penne pasta in the Northern Territory across both Woolworths and Coles stores.
So, what can you do to reduce your grocery bill? Here are the top three tips from CHOICE:
1. Check unit pricing: This allows you to compare prices based on the price per unit, such as per 100g or per litre, which is legally required to be displayed by supermarkets.
2. Shop around: Don’t hesitate to switch stores to take advantage of specials, which can lead to significant savings.
3. Change your routine: Consider cheaper meat cuts, frozen produce, and house brand products, which often perform just as well as more expensive options.
By implementing these strategies, you could save approximately $1900 a year. It’s clear that while grocery prices have risen, making informed choices can help you manage your budget more effectively.
CHOICE’s undercover shoppers visited 104 supermarkets across Australia in December 2024, ensuring a broad representation of socio-economic statuses and geographic locations. The grocery basket consisted of 14 items, with a focus on fresh foods this quarter.
What has been your experience with grocery prices in your area? Do you have any tips or strategies that help you save? Feel free to share your comments below—let’s keep the conversation going!
Also read: Shopper’s grocery bill drops by $200 after switching supermarkets
