A new quarterly report by consumer advocacy group Choice has revealed a notable divergence in supermarket pricing trends over the past year. While the cost of an average basket of 14 common grocery items at Coles and Aldi has fallen, shoppers at Woolworths are paying significantly more.
Divergent Price Trends Across Supermarket Giants
Choice has been tracking grocery prices since March 2024 to help consumers gauge whether supermarket pricing is fair. Their latest analysis shows that the average basket of groceries at Woolworths—with and without special offers—has increased compared to a year ago. In contrast, the same basket at Coles and Aldi has become cheaper.
- Woolworths:
- With specials: Prices rose by 3.7%, from $64.93 to $67.34.
- Without specials: Prices increased by 1.5%, from $68.58 to $69.63.
- Coles:
- With specials: Prices fell by 2.5%, from $68.52 to $66.84.
- Without specials: Prices decreased by 2.1%, from $69.33 to $67.84.
- Aldi:
- With and without specials: Prices dropped marginally by 0.3%, from $51.51 to $51.36.
According to Choice CEO Ashley de Silva, the gap between Coles and Woolworths has widened noticeably. “Coles and Woolworths pricing has always been relatively close—around 75 cents apart in our first survey. Now, that difference has expanded to $1.79,” de Silva explained. He noted that while the difference might seem minor on a single shopping trip, over the course of weekly shopping, it could add up to more than $90 extra a year for Woolworths customers.
Methodology and Consumer Impact
To gather the data, Choice deployed dozens of “mystery shoppers” across 104 supermarkets in 27 locations nationwide. The team recorded the prices of 14 frequently purchased grocery items during December, comparing them with the figures from March 2024.
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The findings highlight that while overall price differences may not seem vast in dollar terms, the cumulative effect over a year can be significant, potentially straining household budgets—especially amid rising living costs. With many Australian families already grappling with financial pressures, the report’s data provides a clear call for enhanced price transparency and consumer protection in the supermarket sector.
ACCC Inquiry and Calls for Greater Transparency
The Choice report follows closely on the heels of the Australian Competition and Consumer Commission’s (ACCC) final report into the supermarket industry. While the ACCC stopped short of confirming whether price gouging was occurring, its inquiry revealed that Australia’s supermarket giants are among the most profitable globally. Both Woolworths and Coles have enjoyed rising earnings margins, with Woolworths seeing the most significant increase.
The ACCC’s report criticized the complex promotional tactics used by supermarkets, which often leave consumers in the dark about the true value of the discounts they receive. Promotional labels can be ambiguous, making it difficult for shoppers to determine whether they are truly getting a good deal. For instance, the ACCC noted that without bonus point offers, shoppers would need to spend about $2,000 to earn a $10 discount from Coles and Woolworths loyalty programs—translating to just 0.5 cents saved for every dollar spent.
Given these findings, Choice is urging the federal government to commit to implementing the ACCC’s recommendations on price transparency. The advocacy group believes that straightforward, “plain-English” disclosure summaries for loyalty programs would help consumers better assess the real discounts on offer. The recommendations include:
- Clear Disclosure of Discount Values: Supermarket loyalty programs should provide easy-to-understand summaries that outline how much discount a shopper is effectively receiving, based on their current spending.
- Enhanced Transparency in Special Offers: Consumers should have access to detailed information about how promotions work, including unit pricing and the specific discount applied.
- Regular Reviews: The ACCC has recommended that the loyalty program practices of major supermarket chains be reviewed again in three years to ensure they continue to serve consumer interests and foster a competitive market.
Industry Response and Future Outlook
Both Coles and Woolworths have responded to the ACCC’s recommendations, with both companies indicating they will review the findings and consider changes to improve consumer transparency. Choice CEO Ashley de Silva remarked that, although there has been some progress, it is unlikely that the supermarkets will voluntarily adopt measures that could stimulate further competition without government intervention.
The federal government, for its part, has expressed support for the recommendations “in principle” but has not yet committed to any specific policy changes. With consumer protection and fair pricing on the national agenda, the issue of supermarket pricing and promotional transparency is poised to remain a hot topic as the government formulates its next steps.
Implications for Consumers
For everyday Australians, the Choice report serves as both a warning and a call to action. As supermarket pricing structures become more opaque, shoppers may inadvertently end up paying more over time without realizing it. The cumulative impact of small price increases can add up significantly, particularly for families making weekly shopping trips.
Consumers are encouraged to be vigilant. When comparing prices between supermarkets, it is not only the sticker price that matters but also how discounts are presented and the ease with which one can understand the true value of a promotional offer. Advocacy for better disclosure and simpler, more transparent pricing could ultimately lead to more competitive practices, benefiting the consumer and potentially reducing the overall cost of living.
Conclusion
The latest report by Choice has shone a spotlight on a critical issue in Australia’s retail landscape: while Coles and Aldi have managed to lower the cost of an average basket of groceries over the past year, Woolworths has trended in the opposite direction, leading to higher overall costs for its customers. This divergence in pricing strategies is occurring at a time when consumer budgets are already under pressure, making the need for clear, transparent pricing more urgent than ever.
As the ACCC’s inquiry continues to influence policy debates, the push for greater transparency in supermarket loyalty programs and promotional tactics could pave the way for a fairer, more competitive market. For now, shoppers are advised to keep a close eye on their receipts and demand clear information from retailers about how discounts are calculated. Ultimately, ensuring that Australians get value for their money is a shared responsibility—one that requires the cooperation of the industry, consumer advocates, and the government alike.
