Waleed Aly thinks he knows why Australians are being hit by rising prices at the supermarket checkout as the cost of living worsens.
The Project star and her fellow panellists were discussing the latest Choice report on supermarket prices, which revealed that a basket of groceries at Aldi was 25 per cent cheaper than those at major rivals Coles and Woolworths.
The research was funded by the Albanian government as part of its plans to tackle rising food prices and shake up the current supermarket duopoly.
In a stinging attack, Aly said he did not believe the government’s plans would make any difference to shoppers.
“The most telling aspect of this report for me was that Coles and Woolworths prices appear to be higher in areas that don’t have Aldi,” he told his fellow panellists on Thursday night.
Aly suggested that if you only have Coles and Woolworths in your area, you will pay a higher price (stock image of a shopper)
“There are all kinds of things related to the cost of supply and supply chains, but ultimately it seems that the prices we pay are not out of necessity, they are out of competition, and that’s what it all comes down to.”
Aly suggested Australians who only have Coles and Woolworths in their area will be hardest hit.
‘When you have nothing but two in your area, you will pay a higher price because there is no reason not to. Why would they charge you less? he argued she.
‘You can say that you want Aldi’s market share to be greater, that would make a difference, but there are three of them.
‘When you travel abroad and you see that there are eight or something like that. And you talk to the people there and they tell you that they beat you with the purchase.
I think it is now clear that this is the reason.
In a stinging attack, Aly said he did not believe the report would make any difference to shoppers.
Panellist Georgie Tunny agreed.
‘If Aldi is not near you because it is also a matter of convenience, if you have worked 12 hours a day and you have to do the shopping on the way home (and you don’t want to go out of your way),’ she said.
Consumer advocacy group Choice published its report on Thursday in the wake of Coles and Woolworths being accused of price gouging.
“Our latest report shows Aldi continues to offer the best value for Australian shoppers across a range of groceries,” CHOICE chief executive Ashley de Silva said.
‘We sent mystery shoppers to regional and metropolitan supermarkets across the country to record prices on 14 grocery items, and will continue to deliver quarterly price analysis reports so Australians can stay aware of where they can find the cheapest food, to help relieve some of the pressure on family budgets.
Choice’s price analysis showed Aldi has the cheapest food nationwide, based on a basket of 14 commonly bought grocery items including milk, bread, sugar, pasta and tea bags and two fresh fruits and vegetables.
The federal government gave Choice $1.1 million in the federal budget to report quarterly for three years.
To find out which supermarket chain offered the best value for money, Choice sent “secret shoppers” to 81 supermarkets across the country in March.
Consumer advocacy group Choice published its report on Thursday in the wake of Coles and Woolworths being accused of price gouging.
Choice found that the average basket of groceries bought at Aldi cost $51.51, 25 per cent less than the same basket of goods at Coles and Woolworths.
Coles had the most expensive basket at $69.33, while items at Woolworths cost an average of $68.58.
This revealed that there was only 75 cents difference between Australia’s two large supermarket chains.
Large supermarkets repeatedly defend the rising cost of food as a result of general inflationary pressures and price increases imposed by global food brands.