Choice price survey crowns Aldi as Australia’s cheapest supermarket

KAREN COLLIER
JUNE 04, 2015
HERALD SUN
DISCOUNT grocer Aldi has been crowned cheapest supermarket in a major price survey as the popularity of private labels grows.
A grocery basket at the German-owned chain was up to half the cost of major brands at Coles and Woolworths, a Choice study found.
But the dominant duo’s ‘own brand’ ranges can also save their customers at the checkout.
Coles and Woolies shoppers swapping leading brands for the heavyweights’ private label equivalents cut their bill by about a third, Choice said.
“Private labels such as Woolworths’ Select and Coles brand account for 21 per cent of packaged grocery sales in Australia. This will keep going north given cost of living concerns,” Choice spokesman Tom Godfrey said.
“Reputation has improved, there are more gourmet products, and many people believe the quality is as good as name brands.
“The downside is this can impact choice if smaller or more niche brands are squeezed.”

Supermarket price survey.

The home brands of both Coles and Woolworths can save shoppers.
Aldi’s basket averaged $87.68 nationally compared with big brands that cost $174.97 at Coles and $176.77 at Woolworths, excluding discounts.
IGA was most expensive at $188.61.
Olive oil, dishwasher tablets, laundry powder, frozen fish fillets and cheese blocks had the biggest price gaps.
Leading brand specials reduced Coles’ bill by $12.41, and Woolworths’ by $4.61.
Victorians paid an average 20c to $3.40 more for the big brand basket than the ACT, Tasmania and New South Wales.
The mid-tier Woolworths’ Select and Coles brand were used for most private label comparisons.
Choice recorded prices at 93 supermarkets across 17 Australian locations in March.
The basket of 31 items included three fresh foods and common purchases such as bread, cheese, chocolate, canned tuna, toilet paper and frozen peas.
Woolworths — which recently pledged to “neutralise” Coles on price and revamp budget private labels to better compete with Aldi — said comparing “a handful of products” was rarely an accurate way to judge prices.
“When you properly compare like for like products we offer customers a range that competes well,” it said.
Coles said households could save an average $570 annually shopping at the chain compared with six years ago, and it was “absolutely committed to further reducing prices”.
Recent Citi research found Aldi prices were 19 per cent lower than Coles brand but 23 per cent higher than Coles’ budget Smartbuy.
Aldi was 28 per cent cheaper than Woolworths’ Select, but 13 per cent more than Homebrand.
AVERAGE GROCERY BASKET PRICE
Aldi private label $87.68
Coles private label $114.24
Woolworths private label $119.40
Coles leading brands $174.97
Woolworths leading brands $176.77
Source: Choice. 28 leading-brand products or their private label equivalents across all three chains plus three fresh food items on March 7-8. Prices shown exclude specials.