Supermarket price wars: Aldi the cheapest basket in Australia, beating Woolworths and Coles by 25 per cent

Australian shoppers perusing the aisles for essentials at one major supermarket can save about $17 on their grocery docket, according to a new survey.

Undercover shoppers recruited by consumer group Choice found a basket of groceries bought at Aldi was up to 25 per cent cheaper than the same haul bought at Coles or Woolworths.

Choice was commissioned by the federal government to produce a grocery basket mystery shop report every quarter for the next three years in a bid to provide transparency amid allegations of price gouging.

Using undercover shoppers across 81 supermarkets nationally during March, Choice compared the prices of a basket of 14 products — 10 packaged items as well as milk, beef mince, apples and carrots.

The average basket of groceries cost $63.74.

Those same groceries bought at Aldi cost $51.51 — more than 25 per cent cheaper than Coles ($69.33 on average) and Woolworths ($68.58 for the same basket).

While there was only 75c different in the cost of goods at the ‘ColesWorth’ duopoly, Choice found when that same basket was on special, the Woolies basket was $3.59 cheaper than the comparable Coles basket.

State-by-state, Choice found West Australians were paying the most for the most basic grocery needs — the average basket cost $64.19, around a dollar more than other equivalent mainland states.

NSW was second-most expensive for both Coles, at $69.80, and Woolworths, at $69.04, Choice reported.

South Australia came in third, with Coles shop costing $69.03, and Woolworths basket $68.23.

The average basket, Choice found, across South Australia, Queensland, Victoria, and the ACT each cost more than $62.

Because Aldi stores are not available in Tasmania and the Northern Territory, Choice compared baskets from the duopoly to a basket of goods from IGA, an independent grocery brand.

It found the cost of shopping at IGA was “substantially higher” than at Coles and Woolworths — more than $13 extra in the NT, and more than $7 in Tasmania.

Choice noted prices in the NT were affected by Tropical Cyclone Megan at the time of the survey.

But the consumer advocates have already drawn the ire of Coles, which took aim at a lack of transparency in Choice’s report.

Choice only declared the type of product bought, not whether it was a brand name or a supermarket-owned brand, or the size. Comparisons on brand name products to Aldi’s range are difficult given it largely stocks its own-brand products. IGA was not included in most of the country — Choice expects to increase its monitoring through the year.

The big two supermarkets have repeatedly pointed out the price of fresh produce is variable between States and even within regions given they aim to source locally.

The Federal Government gave Choice $1.1 million to conduct quarterly price surveys in a measure it said would help to increase competition in Australia’s concentrated grocery market amid high inflation and a cost-of-living crunch that has persisted for nearly three years.

The items compared were: apples; carrots; Weet-Bix; sliced white bread; flour; penne pasta; white sugar; tea bags; tinned diced tomatoes; a block of tasty cheese; full-cream dairy milk; frozen peas; beef mince and butter.

Coles took issue with Choice’s findings — compiled in March — saying all its current prices were listed online, on its app and in-store, and customers looked at them each day.

“We welcome Choice’s contribution; however, it is unclear whether like-for-like products are being compared,” a spokeswoman said.

“Our analysis last week comparing the same basket in WA shows customers can purchase these products for $61.35 at Coles.”

She added the supermarket giant was “always working hard to deliver value”, particularly through its own brand range of essentials at lower prices.

A Woolworths spokesman said all its pricing was transparent via weekly catalogues and on its website, and almost 110,000 customers each week used “best unit price” filters on its app and website.

“We know many of our customers pick Woolworths because of our wide range of high-quality products at competitive prices in more than 1000 locations across Australia,” he said.

Assistant Minister for Competition Andrew Leigh said it was “only fair” big supermarket chains received proper scrutiny to ensure they were “doing the right thing by their customers”.

“Helping shoppers find the best deal makes the family budget stretch further and puts more competitive pressure on the supermarkets,” Dr Leigh said.

Choice chief executive Ashley de Silva said the organisation looked forward to enhancing the clear and reliable information it could provide consumers.

“This kind of transparency is more important than ever as the cost of living crisis continues, and prices of basic grocery items climb,” he said.

The report from Choice comes amid increased regulatory scrutiny on the supermarkets amid accusations — vehemently contested — of price-gouging and profiteering.

The Federal Government has also directed the Australian Competition and Consumer Commission to conduct a prices inquiry, with an interim report due in August, while State Parliaments in Queensland and SA have also held inquiries into supermarket pricing.

A final report into the grocery code of conduct is also due within months.