In the competitive world of Australian supermarkets, a new trend is emerging that’s causing the big players to sit up and take notice. ALDI, the German discount retailer, may only have a 10 per cent share of the Aussie market, but it’s making waves that could see a significant shift in consumer behaviour. With the cost of living on the rise, Australians are increasingly looking for ways to stretch their dollars further, and ALDI is stepping up as a beacon of value.
Despite its smaller market share, ALDI has been crowned the top choice for Christmas food shopping in not one, but two separate analyses, including a Yahoo Finance survey where 38 per cent of over 8,800 readers favoured ALDI over Woolworths 21 per cent and Coles 19 per cent. This marks a stark contrast to the previous year’s results, where Woolworths led the poll. The question arises: are we witnessing a movement away from the traditional supermarket giants?
Mark Serrels, editorial director at consumer advocacy group CHOICE, suggests that an 8 per cent swing towards ALDI is a ‘big difference’ and a trend to watch in the coming year. ‘It will be about market expansion for ALDI in 2025, and it’s going to be impossible for Coles and Woolworths to stop people voting with their feet,’ he predicts.
But what’s driving Australians to shop at ALDI more? For Perth mum-of-three Jasmine Santich, the answer is simple: value for money. She shares her frustration with the higher costs at Coles and Woolworths, where she feels she gets less for her money compared to ALDI. New Zealand father Poreva Kirikava echoes this sentiment, having been moved to tears by the affordability of groceries at ALDI after his move to Australia.
ALDI’s approach to product selection also resonates with shoppers like Santich, who appreciates the quality and the lack of overwhelming choice. ‘I don’t need all the choice,’ she says, highlighting the retailer’s focus on a limited range of high-quality, well-priced items.
ALDI’s streamlined operations, with smaller stores, fewer staff, and a limited range of just 1,800 items compared to the 20,000 to 25,000 products at Coles and Woolworths, allow it to offer competitive pricing. However, this does mean that shoppers might not find everything they need at ALDI, often leading to supplementary trips to the other supermarkets.
Despite this, ALDI has been named Australia’s best customer-rated supermarket for the seventh consecutive year and has topped the last three supermarket reports. Yet, Serrels points out that there are still deals to be found at Coles and Woolworths for those willing to shop around.
The shift away from Coles and Woolworths isn’t just about price. Serrels notes that trust in the major supermarkets has eroded, with consumers becoming skeptical of special deals and questioning the ethics of the duopoly amidst a cost of living crisis. Negative press, including a disastrous interview with Woolworths CEO Brad Banducci and legal action against Coles and Woolworths by the ACCC for alleged breaches of consumer law, has further fueled consumer distrust.
In response to these trends, the government has passed legislation to encourage healthy competition and has made the Food and Grocery Code mandatory, with significant penalties for breaches. These measures aim to alleviate the cost of living pinch and ensure fair play in the supermarket sector.
Have you observed any changes in your shopping habits recently? Are you finding better value at ALDI, or do you still prefer shopping at Coles and Woolworths for convenience? We’d love to hear your thoughts and tips in the comments – your insights could help others make more informed shopping choices!
Also read: Australia’s cheapest supermarket revealed: A look at ALDI, Coles, and Woolworths’ holiday offers
