ALDI beats Coles and Woolworths in supermarket price showdown but shoppers still feeling the pinch

Despite three rate cuts from the Reserve Bank this year, Australian households remain under serious financial pressure — and the weekly grocery bill is a major contributor.

A new national survey from consumer advocacy group CHOICE shows food and grocery prices are still causing widespread concern, with 86 per cent of respondents saying they’re worried about rising costs. That figure jumps to 92 per cent in regional areas.

When it comes to supermarket prices, ALDI comes out cheapest — again.

The survey, conducted in June across 104 stores in 27 locations, priced a basket of 15 commonly purchased items.

Here’s what the average full-price basket cost: ALDI – $55.34, Coles – $56.75, Woolworths – $57.20 and IGA – $65.56.

When specials were factored in, ALDI still came out cheapest at $55.26, followed by Coles ($56.75), Woolworths ($56.96) and IGA ($64.02).

CHOICE found that while most prices at ALDI, Coles and Woolworths were relatively consistent nationwide, IGA prices varied widely depending on the store — in some cases by up to 30 per cent.

The 15 items in the basket included a mix of fresh and packaged foods: chicken breasts, carrots, apples, bananas, strawberries, milk, Weet-Bix, pasta, soy milk, puff pastry and more. The products were chosen based on common brands, packaging, and country of origin to ensure fair comparisons.

Coles and Woolworths on top for deals

When looking at individual items, ALDI had the best overall prices, but Coles and Woolies still offered better deals on some products. For example, Coles had the cheapest carrots, while Woolies offered the best price on chicken (thanks to a special).

Coles and Woolworths remain neck-and-neck in the battle for grocery dollars. This quarter, Coles edged ahead — but only just. Without specials, Coles was $0.45 cheaper than Woolworths, and with specials, the difference shrunk to just $0.21.

In fact, nine of the 15 items in CHOICE’s basket were identically priced at both major chains.

Woolworths has recently cut prices on nearly 700 products, but Coles’ tighter pricing in this survey gave it the edge.

Unlike the big three, IGA stores are independently owned and operated — and that makes pricing less predictable. While IGA had the most expensive average basket overall, in some locations it was actually cheaper than its rivals.

In NSW, IGA’s basket with specials came in at $57.20, beating Woolworths at $57.30.

Still, on average, CHOICE found that IGA’s basket was more than $10 dearer than ALDI’s.

Home-brand showdown

To see how budget-friendly home brands stack up, CHOICE also priced a smaller basket of eight home-brand items.

Here’s what a home-brand basket would cost customers: ALDI – $20.08, Coles – $21.30, Woolworths – $21.40 and IGA – $23.89

ALDI came out on top again, though Coles and Woolworths were only marginally more expensive — in some cases just one cent more per item.

But when it came to taste, Woolworths came out on top. In a blind bake-off using puff pastry, berries and cream cheese, Woolies’ ingredients scored the highest with CHOICE’s tasters.

Freshness test

To test produce quality, shoppers were asked to assess the freshness of their strawberries over five days.

On day one, all Coles punnets showed no signs of decay. Woolies followed with 92 per cent, ALDI 75 per cent, and IGA just 50 per cent.

By day five, Coles strawberries still held up better than the rest — with 58 per cent showing no decay. ALDI and Woolies came in just under 45 per cent, while IGA lagged behind at 25 per cent.

Location, location, location

Where you live can also affect what you pay. ALDI’s pricing was mostly stable, but shoppers in Western Australia paid more for apples — and across the board, prices were higher at Coles and Woolies in the west.

Victorians paid the least at Coles and Woolworths, while NSW offered the best value for IGA and ALDI customers.

Key takeaways for shoppers

While pricing fluctuations and specials can shift results week to week, CHOICE says the findings highlight that small shopping changes can lead to big savings over time.

Their top money-saving tips?

• Check unit pricing to compare value across sizes and brands
• Shop around to take advantage of specials
• Change habits — opt for cheaper cuts of meat, frozen fruit and veg, or try home-brand alternatives

“Prices are still much higher than they were just a few years ago,” CHOICE said.

“But being strategic can help households stretch their budget further.”