As the holiday season approaches, Australians are gearing up for the festive cheer, which often includes a hearty spread of traditional foods. With the cost of living on the rise, savvy shoppers are on the lookout for the best deals to keep their holiday feasts both delicious and affordable. The quest for savings leads us to the perennial question: which of Australia’s supermarkets offers the best value for money?
In a recent government-funded shopping basket comparison conducted by consumer advocacy group CHOICE, ALDI has been crowned Australia’s ‘cheapest supermarket’ for the third consecutive time. The study involved sending mystery shoppers to 104 stores across the country, comparing prices on a range of everyday items. However, when it comes to the iconic festive staple, the leg of lamb, Coles and Woolworths have managed to edge out ALDI with their special offers.
CHOICE CEO Ashley de Silva highlighted that ‘Coles and Woolworths both sold a leg of lamb at an average of $12.89 per kilo, while ALDI came in third place at $13.99 per kilo.’ It’s worth noting that even without the specials, Woolworths maintained the lead for the cheapest leg of lamb, followed by ALDI and then Coles.
The leg of lamb wasn’t the only product under the spotlight; a two-litre tub of ice cream also featured in the quarterly report, which has been changing its focus products since its launch earlier in the year. This attention to detail ensures that the comparison remains relevant and reflective of the average Australian’s shopping habits.
Interestingly, a poll of over 6,800 Yahoo Finance readers revealed that 35% were planning to do their Christmas shopping at ALDI, which also received Canstar’s best-rated supermarket accolade. Coles and Woolworths each garnered 20% of the reader’s preference, despite ALDI’s lower prices. Surprisingly, ALDI only holds 10% of the Australian supermarket share, translating to about five million shoppers visiting its 590 stores each month.
When it comes to the 14-item basket grocery shop, ALDI continues to dominate the competition, including Woolworths, Coles, and IGA. The basket, which included items like beef mince, milk, apples, and carrots, came in at $50.63 at ALDI, compared to $66.18 at Coles, $69.17 at Woolworths, and $73.80 at IGA. ALDI ‘s price has consistently decreased from the first and second waves of research, showcasing their commitment to affordability.
CHOICE‘s report also reminds shoppers to take advantage of specials to secure the cheapest basket of goods. Without specials, the prices at Coles and Woolworths increased slightly, while ALDI’s remained the same, further cementing its position as the budget-friendly option.
The comparisons were made on a basket of 14 items, including both national brands and comparable supermarket or budget-brands, with specials included. The average grocery basket was carefully curated to ensure a fair comparison, taking into account factors such as weight, ingredient lists, country of origin, and packaging similarities.
The government-funded report by CHOICE was initiated in response to public backlash over alleged price-gouging at major supermarkets. The Albanese government has committed to ensuring fair pricing at the checkout and has empowered the Australian Competition and Consumer Commission (ACCC) with an additional $30 million to address misleading pricing practices. The ACCC has taken legal action against Coles and Woolworths for alleged breaches of consumer law.
ALDI’s ‘best value’ proposition is attributed to its streamlined product range, offering approximately 1,800 products compared to the 25,000 products sold by its competitors. ALDI has no loyalty program and does not compete in the online shopping sphere, focusing instead on low prices and Special Buys. ALDI Australia’s managing director, Jordan Lack, encourages Australians to give ALDI a try, citing significant savings for customers.
How do you approach saving on holiday groceries? We’d love to hear your strategies and experiences. Share in the comments below and let’s exchange tips for a budget-friendly festive season!
Also read: ALDI has cheapest groceries in Australia, CHOICE finds
Hello I would just like to comment on the Supermarket debate .
Aldi are cheaper than the other two Coles & Woolies , but to be honest they could be a lot cheaper as they are just going down the same path as C & W money money money !!! Aldi could show that they are the people’s choice of supermarket by staying cheaper longer and not follow what C & W are doing specially in these tough times we are in now .
Before I retired, at one stage in a substantial career in retail, I used to be a buyer. So, I tend to scrutinize everything when it comes to my purchasing. Aldi is by far the cheapest of these three supermarkets. Like any other business Aldi needs to make a profit or they will go out of business. If you compare all three stores prices on any of the items Aldi sells you are almost guaranteed to find that Aldi is cheapest. In case you are unaware of it, Aldi can only remain so competitive as long as it limits its range of products, there are losses attached to stocking a much larger selection as customers really only buy a percentage of what in on their shelves. The other factor is that the staff that we see instore do ALL of the work. They do not have staff for different parts of the instore business. This is how the business was run when I began working in retail supermarket, almost 60 years ago. If anything, Coles and Woolworths are trying, to some degree, to emulate Aldi’s model as they know they are losing out.
I always shop at Aldi first for my basic items and then visit the other two for their specials and any other products that Aldi doesn’t stock.
There is one new development at Aldi that I am NOT in favour of and that is the self serve registers which appear to be being trialled at some stores. They are all Card Only registers, which means that if I want to use cash I MUST line up with those who have trolleys at what is usually the only staffed register. I will not encourage any business to force customers down the digital track by using that option.