Shoppers have been able to cut their grocery bills by a quarter by ditching major supermarkets, a report says, but those in Tasmania and the Northern Territory will miss out.
An investigation by consumer group Choice found that Aldi had the lowest prices of the major supermarkets for an average basket of products.
An average basket of 14 common household items from Aldi costs $51.51 compared to $68.58 at Woolworths and $69.33 at Coles.
Aldi crowned Australia’s cheapest supermarket
“Aldi was the clear value leader in our first 2024 grocery basket survey, and our 14-product basket cost just $51.51,” said Ashley de Silva, CEO of CHOICE.
The report says the lack of Aldi stores in Tasmania and the NT contributed to higher average grocery prices in those jurisdictions.
Tasmanian shoppers paid $68.90 on average for the basket of products, while those in the NT paid $68.82.
On average, customers in the remaining jurisdictions paid between $62 and $64 for the same items.
Ashley de Silva, Choice’s chief executive, said where customers lived determined how much they would pay at the checkout.
“If you live in Tasmania or the Northern Territory, you pay a lot more each week for your groceries,” he said.
“However, this is mainly due to the fact that these areas have more limited shopping options than the rest of the country, as there is no Aldi in Tassie or the NT.”
The consumer group sent mystery shoppers to 81 regional and metropolitan supermarkets across the country, including Aldi, Woolworths and Coles.
Grocery prices at Coles and Woolworths are very similar, with just 75 cents separating the prices of our 14-item basket with no special offers.
The basket of items included bread, flour, milk, ground beef, canned tomatoes, Weet-Bix, apples, carrots, penne, a block of cheese, frozen peas, butter, sugar and tea.
The report was the first of government-funded quarterly reports on supermarket prices that were created to help address concerns about the cost of living at the checkout.
Competition Minister Andrew Leigh said the report showed it was worth shopping around.
“We’ve seen an increase in split-basket purchasing over the last few years as households have felt the cost of living pressure… (which) will put more competitive pressure on large businesses,” he told reporters.
Tasmanian senator Tammy Tyrrell lamented the lack of supermarket competition in her state.
“Tasmans are bearing the cost of Aldi and other supermarkets putting them in too harsh a basket,” he said on social media.
The federal government has provided Choice with $1.1 million over three years to conduct the reports.
A federal review has called for a mandatory code of conduct between supermarkets and suppliers, with a final report due at the end of June.
Aldi praised the report, but Coles questioned the survey’s methods and offered its own final price.
“We welcome Choice’s contribution, however it is unclear whether like-for-like products are being compared,” a Coles spokesperson said.
“Our analysis last week comparing the same basket in New South Wales shows that customers can buy these products for $59.35 at Coles.”
Woolworths emphasized choice in its response to the survey.
“We know that many of our customers choose Woolworths for our wide range of high-quality products at competitive prices in more than 1,000 locations across Australia,” the company said in a statement.
Greens senator Nick McKim said the report highlights the need for more players in the market.
“It’s incredible that there can be only a one percent difference in prices between the duopoly,” he said.
“The choice between Coles and Woolworths is no choice at all.”