Key Points
- New research from Choice reveals grocery prices have increased at Woolworths and gone down at Coles.
- According to the consumer group’s data, Aldi remains the cheapest supermarket for customers.
- The Australian Retailers Association says Choice’s data analysis lacks transparency.
With Coles and Woolworths about to be taken to court over allegations of misleading consumers on discounts, new data shows which supermarket is the cheapest.
New research reveals grocery prices have increased at Woolworths and gone down at Coles, while Aldi has again cemented itself as the cheapest supermarket for customers.
The data from consumer group Choice on supermarket prices found slight changes in the cost of groceries in the June quarter, compared to its initial report for the March quarter.
It found that an average basket of 14 common household items cost $68.37 at Woolworths, which is $3.44 more expensive than the same items three months before.
The prices of the same items at Coles came down $2.30 to $66.22 in the same time period.
Choice found Aldi had the cheapest cost, with the basket setting shoppers back $50.79, down from $51.51 previously.
The most expensive supermarket was IGA, at $78.95 for the items, but no cost comparison was made due to the second report having a larger sample size at the chain compared to the first one.
Australian Retailers Association, Woolies respond
However, the Australian Retailers Association says the data lacks transparency as Choice has not specifically named the items analysed in its report.
The organisation’s chief executive Paul Zahra said the report could be comparing premium brands at Coles and Woolworths to Aldi’s private label options and also noted that 14 items amounted to a “very narrow basket” given supermarkets offer thousands of products.
The 14 items included in Choice’s basket of goods included apples, carrots, Weet-Bix, sliced white bread, flour, penne pasta, sugar, tea bags, tasty cheese, milk, frozen peas, beef mince and butter.
“This is not a fair or useful comparison for customers,” he said, adding that it was important for Australians to check prices themselves.
“It’s important that customers — if they’re working to a budget — that they do their homework,” he told the Today show.
“Retailers, by nature, will always try to offer value.”
A Woolworths spokesperson said its products are competitive with prices at discount retailers and their range was 30 per cent cheaper on average than the brands included in the Choice report.
“We remain focused on delivering value for customers and continue to work harder to help them easily find that value when shopping our stores or online,” they said.
Findings come as ACCC takes on supermarkets
The findings come in the same week the consumer watchdog announced with misleading specials.
The Australian Competition and Consumer Commission accused the major supermarkets of increasing prices for a brief period before lowering them and moving them to promotions on sale, but still higher than the initial price.
Choice CEO Ashley de Silva said specials on items made a large difference in the cost at checkout.
“Choice has previously found supermarket labels are often confusing, making it difficult to tell if there is a true discount on offer or not,” he said.
The Choice reports were funded by the federal government, following consumer concerns about price gouging by the major supermarkets.
Prime Minister Anthony Albanese said the report shed light on deals at the checkout.
“Today’s Choice report provides important information to consumers, but we know there is more to do, and we are committed to taking action to make sure Australians are getting the best deal possible,” he said.
“We are doing everything we can to ensure Australians are paying a fair price at the checkout, and Australian farmers are getting a fair price for their goods.”
