News

Turns out ALDI are the ones keeping grocery prices down, down

Consumer advocate group Choice has put another boot into Coles and Woolworths with the well-timed release of its quarterly supermarket price check, in which a basket of groceries at each of the major supermarkets costs 30% more than at ALDI.

The Choice Supermarket Basket Survey compared the same basket of 14 supermarket stables at 104 different stores across the country.

It found ALDI was by far the cheapest store, with the 14 items costing $50.79 during the June quarter, 72c cheaper than the same items cost during the March quarter.

RELATED: Coles and Woolworths were taken down by Reddit sleuths

The same items cost $66.22 at Coles, and $68.37 at Woolworths. While the price of Coles’ basket had dropped by $2.30 over the quarter, Woolies had hiked prices by $3.44.

IGA was so far the most expensive option, charging $78.95 for the items – which include apples, carrots, Weet-Bix, sliced white bread, flour, penner, white sugar, tea bags, tinned tomatoes, a block of tasty cheese, full-cream milk, frozen peas, beef mince, and butter.

Ironically, it was a (alleged) special on tea that made the difference between Coles and Woolies; without specials, the items cost $68.70 at Woolworths, but $69.91 at Coles.

“Buying items on special can make a difference to overall grocery costs, and reinforces the benefits of shopping around where possible,” Choice CEO Ashley de Silva said.

“A discount on tea bags at Coles during our survey period was a major influence on the results of this survey.”

RELATED: The vital next step for Woolies and Coles as Federal Court proceedings loom

“Unfortunately, Choice has previously found supermarket labels are often confusing, making it difficult to tell if there is a true discount on offer or not.

“Our second quarterly supermarket survey highlights the importance of clear, simple labelling, that leaves the customer in no doubt about whether a product is actually on special.”

The second quarterly report comes in the same week that the ACCC initiated court proceedings against Coles and Woolworths for allegedly “misleading consumers through discount pricing claims on hundreds of common supermarket products”.

ACCC chair, Gina Cass-Gottlieb, said the misconduct involved 266 products for Woolworths over 20 months, and 245 products for Coles over 15 months, and was deeply misleading.

“Following many years of marketing campaigns by Woolworths and Coles, Australian consumers have come to understand that the ‘Prices Dropped’ and ‘Down Down’ promotions relate to a sustained reduction in the regular prices of supermarket products.

“However, in the case of these products, we allege the new ‘Prices Dropped’ and ‘Down Down’ promotional prices were actually higher than, or the same as, the previous regular price.

“We allege that each of Woolworths and Coles breached the Australian Consumer Law by making misleading claims about discounts, when the discounts were, in fact, illusory.”

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

"*" indicates required fields

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.