Latest Choice survey reveals Australia’s grocery price divide at major supermarkets

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"Choice Survey Highlights Grocery Price Disparities Across Australia"

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A recent survey conducted by the consumer advocacy group Choice has revealed significant discrepancies in grocery prices across Australia, highlighting that Western Australians are paying more than their counterparts in the eastern states. The survey, which analyzed the prices of 14 common grocery items at various supermarkets, found that in March, the average cost of a grocery basket was $55.35 at Aldi, $58.92 at Woolworths, $59.22 at Coles, and $69.74 at IGA. When factoring in special offers, Aldi remained the most affordable option at $54.44, while the prices at Woolworths and Coles were $58.86 and $57.67, respectively. The survey involved undercover shoppers visiting 104 supermarkets across 27 locations to gather these figures, and it was noted that prices for staple items, such as apples, were particularly higher in Western Australia, leading to an overall more expensive shopping experience in that region.

The analysis also indicated that shoppers in New South Wales benefitted from lower prices at Woolworths and IGA, while those in the ACT and NSW found the best deals at Aldi. The price differences between the major supermarkets have narrowed since the last survey in December 2024. Notably, the Choice report has adapted its approach based on consumer feedback, including seasonal items in their basket that reflect current shopping trends, such as porridge oats and hot chocolate during winter. As major retailers like Woolworths and Coles announce price cuts to regain customer trust, Aldi has responded by lowering its prices as well. An analysis by JP Morgan indicated that Woolworths' prices were 8.6% higher than Aldi's, and Coles' prices were 8.2% higher this month, although experts caution that there still isn't enough competitive pressure in the market to trigger a genuine price war among the supermarkets.

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Western Australians are paying more for groceries than people in the eastern states, while Aldi shoppers across Australia continue to get the best deal on average,Choicehas found.

The consumer advocacy group on Wednesday released its fifth quarterly report into supermarket prices, which it assesses by buying 14 common groceries from different supermarkets. The report is funded by the federal government.

In March this year, excluding specials, the basket of items cost $55.35 at Aldi, $58.92 atWoolworths, $59.22 at Coles and $69.74 at IGA.

When the savings from available specials were factored in, the Aldi basket cost $54.44, compared with $57.67 atColes, $58.86 at Woolworths and $67.54 at IGA.

To conduct its survey, Choice sent undercover shoppers into 104 supermarkets – 27 Woolworths, 27 Coles, 23Aldiand 27 IGA stores – in 27 locations across the country.

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The Choice report found Western Australians paid more in March than shoppers in the mainland eastern states at Woolworths, Coles and IGA.

While the prices varied very little between Aldi stores, Western Australian shoppers paid up to $2.70 more for apples – considered a “staple item” – at the discount chain than in other locations, making their survey basket more expensive overall.

Shoppers in New South Wales paid less than other states at Woolworths and IGA; those in the ACT and NSW got the best deal at Aldi; and in Queensland, shoppers paid less than their fellow Australians at Coles, according to the report.

The difference in prices between Coles and Woolworths and discount chain Aldi had narrowed from December 2024, when Choice conducted its last survey.

In December, Choice found a basket without specials cost $51.36 at Aldi, $69.63 at Woolworths and $67.84 at Coles.

After including IGA in the survey in June last year, Choice on Wednesday said it had again changed its approach – based on consumer feedback – by switching some of the 14 items in the basket seasonally based on what people are buying.

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For example, the latest basket included products people are more likely to buy in winter, such as porridge oats and hot chocolate, Choice said.

Choice will conduct its next quarterly survey after Woolworths and Coles announced they would cut the prices of hundreds of items, as the major supermarkets look to win back customer trust.

Aldi has responded by lowering its prices, according to analysis by JP Morgan of a range of categories including meat, cheese, bread, frozen products and nappies.

Released on Wednesday, the investment bank report found Woolworths prices were 8.6% higher than those at Aldi this month, while Coles prices were 8.2% higher.

While there are hopes of intensifying competition in the supermarket sector,experts have previously said there was not enough competitive pressurein the domestic market to have a genuine “price war”.

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Source: The Guardian