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Woolworths, Aldi and Coles: who wins the price war?

Pam Brossman, 50, of New South Wales was a former customer of Coles and IGA, but switched almost immediately to German chain Aldi when it first launched in her hometown of Mosman because it was ā€œso much better valueā€.

She has shopped at the bargainĀ supermarket ever since, swearing never to return to the bigger stores.

ā€œAldi has much better variety, and I can do pretty much everything in the one spot without having to go anywhere else,ā€ Ms Brossman told The New Daily.

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ā€œIf I go shop at IGA here in Mosman, everything is three times what I pay at Aldi.

ā€œPrice-wise, I’m more than happy.ā€

Ms Brossman has made the right choice, if new data is correct.Ā On average, Aldi has the nation’s cheapest groceries, consumer advocacy group CHOICEĀ has found.

A basket of 31 common big-brandĀ items would cost almost $74 more at Coles and $84 more at Woolworths than a basket of private label equivalents at Aldi, CHOICEĀ estimated.

The consumer groupĀ sent undercover shoppers to 32Ā Coles stores, 32 Woolworths stores and 18 Aldi stores in wealthier and poorer areas across Australia to calculate the average prices.

Even withĀ specials included, a Woolworths basket cost an average of $172.16, compared to $162.56 at Coles and $87.57 at Aldi.

ā€œBy foregoing leading brands at the big two supermarkets and heading to Aldi, you can save about 50 per cent off your weekly grocery bill,ā€ said CHOICE spokesman Tom Godfrey.

ā€˜We’ll do better’

Parents and grandparents are not the only consumers enamoured with the cut-price supermarket, with at least one youngĀ Aussie ā€œconvertā€.

ā€œI simply can’t face the idea of doing a big shop at Coles anymore,ā€Ā Samantha Lenkic, 25, from MelbourneĀ told The New Daily.

Not every item is available at Aldi, forcing Ms Lenkic to shop occasionally at the bigger stores, much to her annoyance.

ā€œIt physically hurts to do so because the cost of a small bag of groceries would fill up half my trolley at Aldi,ā€ she said.

ColesĀ responded to the price comparisonĀ by highlighting its recent success in driving down prices, and pledging even lower prices.

ā€œColes has been unrelenting in driving down prices for our customers over the past six years, and that will not change,ā€ a spokespersonĀ told The New Daily.

ā€œCompared to six years ago, an average Australian household can save an average of $570 a year by shopping at Coles and we are absolutely committed to further reducing prices for our customers so they can save more at our supermarkets.ā€

Woolworths also pledged to ā€œdo even betterā€ in future, and criticised the survey’s methods.

ā€œComparing a handful of products is rarely an accurate way to judge prices across a whole weekly shop,ā€ a spokesperson said.

ā€œProducts like our Homebrand and Select products offer great value and quality and we are looking to do even better in this area in the future.ā€

How toĀ save even more

Consumers who prefer one of the bigger supermarket chains can still find bargains.

For example, a basket of homebrand goods at Coles was $48 cheaper than a basket of equivalent big-brand items at the same supermarket.

ā€œIf Aldi’s no-frills experience is not your thing, but lowest price is a priority, you can still save 35 per cent at Coles and 33 per cent at Woolworths by swapping leading brands for the chains’ private label equivalents,ā€ CHOICE spokesman Tom Godfrey said.

The growthĀ of private label items will continue, to the benefit of consumers, a spokesman for the supermarket industry predicted.

ā€œThat’s certainly a trend,ā€ Australian Food and Grocery Council spokesman James Mathews told The New Daily.

ā€œColes and Woolworths are recognising that the future of brands and their future are also linked and that consumers are looking at, yes, price, but they’re also wanting choice and variety as well,ā€ Mr Mathews said.

ā€œOur view would be that the long-term interest of the consumer is best met when there is a wide range of choice.

ā€œChoice creates a proper market.ā€

The items CHOICE compared

White bread (700 grams)
Chocolate (200 or 220 grams)
Butter (200 or 220 grams)
Cheese block (500 grams)
Greek style yoghurt (1 kilogram)
Vanilla ice cream (2 litres)
Frozen peas (1 kilogram)
Crumbed frozen fish (six pack)
Chocolate biscuitsĀ (200 grams)
Potato chips (170 or 175 grams)
Short cut rindless bacon (175 grams)
Coke-flavoured soft drink (1.25 litres)
Corn flakes (725 grams)
Strawberry jam (500 grams)
Orange juice (2 litres)
Cling wrap (60 metres)
Canned tuna in springwater (425 grams)
Extra virgin olive oil (1 litre)
Canned tomatos (400 grams)
Pasta (500 grams)
Plain flour (1 kilogram)
White sugar (2 kilograms)
Tissues (250 pack)
Antibacterial hand wash (250 millilitres)
Laundry powder (1 kilogram)
Dishwasher tablets (28 pack)
Toilet paper (8 or 12 pack)
Loose bananas
Loose broccoli
Pre-packed chicken fillets
Free range eggs (700 grams)

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