A new report by consumer advocacy group Choice has revealed that Australia’s two largest supermarkets, Woolworths and Coles, weren’t the cheapest options for consumers.
The results of its latest supermarket pricing study, tabled after comparing prices of 14 common grocery items across 104 stores nationwide, found Aldi to be cheaper by at least AU$18, while compared to Coles or Woolworths, Nine News reported.
As part of a transparency initiative, mystery shoppers were dispatched to supermarkets across the country every three months for three consecutive years. They found that a basket of essential groceries at Aldi, comprising bread, cheese, milk, apples, flour and tinned tomatoes, was priced at AU$50.79 in June, down from AU$51.51 in March, whereas Woolworths customers paid AU$68.70 for the same items, while Coles shoppers spent an average of AU$69.91, ABC reported.
The report came as the Australian Competition and Consumer Commission (ACCC) dragged Coles and Woolworth to court, alleging that they duped customers with “illusory” discounts into buying over 240 categories of products.
The ACCC accused the supermarkets of doubling and then lowering their rates for promotions to deceptively market products as discounted.
“I think [the report] just confirms what we already knew, which is that Aldi tends to be cheaper,” said Mark Serrels, the editorial director of Choice. “And [it] also confirms something else that I always find really surprising, is there are small differences, but for the most part, Coles and Woolies are almost identical [on prices], which is, in and of itself, quite telling.”
The supermarket sector’s viability was questioned, as it faced continued scrutiny over pricing practices. With the investigations in place, consumers were seeking transparency and fairness in the grocery ecosystem.
The Choice survey also found spatial price discrepancies across Australia, with varied levels of supermarket competition between states.
“I think competition creates a price pressure, and that’s a big problem here in Australia,” Serrels said. “When you go to a country like the UK, it’s not just Coles and Woolies. There’s four or five Coles and Woolworths-sized supermarket chains there, and that drives the prices down a bit.”
