Average prices of Coles, Woolworths and Aldi: Choice

https://www.choice.com.au/supermarketsurvey

It seems that Coles' "down down" and Woolworths' "cheap cheap" everyday low pricing strategies are no match for Aldi's lower cost bases for labour, rent and other general and administrative costs, as Aldi retains its crown as cheapest supermarket.

Our basket of leading brand products cost $87.29 more at Coles ($174.97 excluding specials) and $89.09 more at Woolworths ($176.77) than a basket of equivalent products from Aldi ($87.68). So by foregoing leading brands you can save about 50% off your grocery bill by shopping at Aldi.

The difference between Coles and Woolworths was less distinct – just $1.80 between them excluding specials for the leading brand basket – reflecting the intensive process of price monitoring that exists between the duopoly.

Independent chain IGA returned the most expensive basket – 8% more expensive than the same basket of leading brand products at Coles (excluding specials).

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Comments

      • So if the opinion holds that the Aldi brands aren't as good, the leading brands are making inferior products for Aldi, or any other private brand?

        • +1

          Not inferior, slightly different in some cases, identical in other cases. Or a slightly different blend of taste..

        • +1

          Seriously, a negative vote for a question?

  • +1

    I just shop at three or four different stores to get the best value. The butcher for all of my meat, the greengrocer if I need a lot of fresh veg, Aldi for cheese/bread/cat food/tuna/eggs/toilet paper etc and then Woolies for everything else.

    • I'm similar to you and will prob do a Aldi shop once a month for some staples. I'm lucky enough to live near a farmers market and a large produce market inc butchery so can really get a good mix of good quality for a lot less. I can sometimes get Angus beef porterhouses for $12/kilo. Pretty good. If we were vegetarian we would save even more money.

    • +1

      yup this is pretty spot on.. as well as local bakery etc.. aldi has great stuff and some not so great stuff (dont buy steak or fruit veg there) but has great chicken and lamb… lots of ozbargain bits and pieces.. eg fruit juice 2lts $4 much better than paying $6-$6.50 or 24 tasty cheese slices for $5.49 or 6 yoghurts flavoured for $2.99 much better value than main evil supermarkets.. while their homebrand weetbix is ok i can taste difference and stay with the 1.4kg box at majors.. the key is to understand each of the products and niches and frequency of purchase then plan/execute accordingly. generally their home brands are better and bigger and cheaper than the majors…. and u dont have to scan your own fn items!

      • +1

        Exactly. The non perishables are exactly the same in quality - the toilet paper and paper towel is waaaay better than any of the traditional supermarket offerings though - and heaps cheaper. I like the tinned tomatoes but the tinned soups etc are often not good. Then again, I hate the Woolies brands soups too.

        I gave up on Aldi for quite a few years once as I didn't understand what I should and shouldn't be buying but now that I've figured it out, I save heaps and sacrifice nothing except a bit of time going to the other places.

  • +4

    For people dissing Aldi food - there are some staples that are excellent like the tinned veg, olive oil, flour, the lasagna is good for an emergency meal, stock cubes are good. I am happy to buy their organic range as it costs as much as the non organic stuff in Coles or WW. Aldi is great for tinned tomatoe which in our household we use a lot of but of course they don't have the variety as other stores or some special items from USA or UK come and go quickly. Sliced meats are also very cheap and good, I prefer Sirena over their tuna but if you are lucky enough to live close to all 4 supermarkets (inc IGA) if you know where to go to buy what, you can save a ton of money. Their washing up detergent is far superior to Morning fresh IMHO.

  • +1

    I recently started going to Aldi, not for food but all of the red label specials. All of the Wed/Sat specials that hung around seems to sell at rock bottom prices. I keep buying good quality crap, that I will probably never use. 2 weeks ago I bought 7 paint pads, they were $1.50, Only if they were at that price when I was painting my house. Well I will be saving them for my next house.

    • +1

      You are on a downward spiral mate. Soon your car will be parked outside because your garage is full of crap that you won't have used because by the time they car starts to rust. It's a real issue.

      • Recently started going to 3 different Aldi. Each with their own characteristic. I noticed in the less affluent area there seemed to be more of the luxury products on sale, while in the more affluent area you were left with crap.

  • +1

    Does ALDI have the multi-million dollar overheads for execs & boards that Coles & Woolies have?

    Also the need to pay dividends on share prices inflated well beyond underlying NTA values?
    [Must check the latest NTA figure for Woolies - tho the SE seems to have recently brought share prices closer ;-]

    All these cost$ are reflected in the price you pay!!

    • Looking forward to more [vested ;-] negs :-)

      Googling gave some $3.52 for the Net Tangible Value (say book, or break-up value, for a competitor to take over) on each WOW share.

      Both CBA ($5.40) & Telstra were initially floated at book value.
      Woolworths too? May have to look that up? But would need to track through subsequent movements too.

      The forecast Return on Equity is given as 27.5% - around grossed up returns from a few years back for the big banks. The Banks showing an after corporate tax rate to diminish their $40bn annual profits - so we don't appreciate the average $4K slug per Oz family.
      The Lieberals $100m investment in the Banks might now be worth $150m, returning around 10% annually, & going up with inflation.
      Lieberal vested interests would seem to argue against any action to disturb shylocking profits??

      (WOW PE 14.16 giving some 7% pa for dividends on [inflated] share prices.)

      It would be naive to expect the cost$ of execs, boards & [excessively] high investment return$ to NOT be reflected in the prices consumers pay!!

      In the past I might have likened the Big Boss of Woolies to Al Capone. With an empire that spanned the loan sharking, gambling, & bootlegging sectors - only apparently leaving out the sex & drug 'industries'?
      Some new legal openings?
      More exec perks to include in the package ;-)

      At least Woolies pay the 30% corporate tax, although [as with negative gearing] inflation allows preferential tax treatment of borrowings. So actually paying a somewhat lower corporate tax rate.
      No such luck for the voting peasant - taxed on the inflationary (2 - 3%pa) share of interest earnings; & also subject to bracket creep.
      Guess this helps balance the free kick for corporate borrowings, & negative gearing?
      Sad that our peasant invariably pays.

    • The answer to you is no one knows. Because aldi is owned by a secretive billionaire who bullys or pays out people that speak about them. They are cleverly structured in Australia that non of their stores need to disclose financial information, and more likely than not, not pay any tax by paying their German parent tonnes of licences fees.

      And oh, if u r Australian ( I make o assumptions of such), than most likely u are a Coles or woolworths share holder, so u receive those dividends in ur superfund. So whatever u pay, u probably receive back 99.999%. The other 0.001% estimate, would go into corporate costs. Tiny price to pay to be Australian owned.

      • You are certainly a prolific poster. My offerings are far more frugal ;-(

        With so much bumf on the airwaves, I personally prefer quality over quantity.

        While you slag off Aldi [like Uber] I note that Oz store expansion is apparently funded out of PROFITS here??

        I'm the product of two Oz parents, who both signed up to the army in WW2.
        My super is all in cash - Award super cash flows just boosting share prices well above NTA.
        (Some parallels to too readily available bank lending fueling a housing bubble??)

        I do have shares in all the banks - both major, & minor: as the Lieberal banking investment would seem to guarantee continuing profits for these, at least in the short term.

        As a youngster who professes some interest in economics perhaps you could consider further studies at Melbourne - tho a 99.5 mark may be a requirement?

        Out of interest did you actually find any [significant] error in the figures I have given? If you can substantiate [with references given} these I am more than happy to make a correction.

        As an old codger with a failing memory I find a spell-checker invaluable - tho it does not guard against errors in grammar. Would I be rude to suggest the same for a younger generation ;-)

        IIRC a figure of 1.27bn for WOW shares? At a NTA figure of $3.52 I make that some $4.5bn book value to go with borrowings.
        Assuming a 1:1 gearing there might be a similar level of borrowings at say 6%pa with around half (inflation in the yearly 2 - 3% range) that due to inflation, but the full 6% tax deductible.
        Based on these assumptions Woolies might have a 'real' reduction in their tax bill of around some $34m a year? [30% of 2.5%pa on say $4.5bn}

        I would be most interested if you could provide the actual figures?

        PS: I am primarily interested in giving the 'average' Australian (those termed the Aussie battler) a fair go. We are following the US/UK trend in increasing disparity between the working poor - increasingly lower paid, & insecure [casual/part-time] employment - & a small, ever wealthier elite; against a background of a shrinking middle-class.

        Personally I might have [government guaranteed] Banks limited to an "after tax" 7% pa return on NTA. With present franking credits that is equivalent to some 10%pa, & might be expected to keep pace with inflation.
        (Some parallels with rentals?)

        Of interest CBA shares were originally floated at a NTA figure of $5.40. Current annual dividends, inclusive of franking credits, now exceeding that?

        Are 'we' being royally ripped off with excessive profits being made by our banking sector?
        The same argument also applying to other corporates - eg C/W??

  • +5

    We got an Aldi, Coles, Woollies and a few butchers and green grocers in our Complex. I buy similar stuff every week. $200.- at Aldi gives me a trolley full of food, $200.- at Coles or Woolies the trolley is only about a third full. That's about as scientific as I get about shopping. Attractive/unattractive people can be found through the whole centre and as far as retirees go, I do hope to make it to that stage one day.

    • +1

      The retirees at my local Aldi have that place on lock-down. Don't even think about getting a Saturday morning Special Buy. They are parked side-by-side mobility scooter to mobility scooter from 4am until doors open at 8am like a well organised military operation.

  • Aldi may another competive advantage, they got mentioned in the Senate enquiry as not being very keen on paying company tax in Australia.

    • +3

      Oh! Did they mention that I am not keen on paying tax either?

      Maybe the senate could do one of the "OzBargain exclusives" on tax. Is there a senate rep here? :P

  • +1

    But why are we comparing "leading brands" to "Aldi equivalent"

    What if you were to do the same test with Aldi -vs- Home Brand?

    Not having a go at Aldi (we don't have them in WA yet but will certainly try them), but surely we want an apples to apples comparison?

    If I want a basket of small cars, of course my basket of Mercedes is going to be more expensive than my basket of Toyotas. Toyotas -vs- let's say Hyundais is a much fairer fight no?

  • aldi have jacked up their prices on nuts a fair bit. aldi macadamia nuts are more expensive than at woolworths now

    • +1

      This Wed assorted nuts are special buy at Aldi ;-)

  • community announcement
    For all those kettle chilli lovers. Aldi has introduced new slow cooked chilli chips for $2.29
    Tastes just the same. Although the chips are not as crispy
    Good price when kettle is not on special

  • +1

    my local iga overall is a little more expensive, however their home brand - i.e black and gold is comparable or cheaper than coles and woolies home brands.
    most of these home brands are made in the same factory as leading products - they get the stuff that was not upto scratch sold at a cheaper price.
    eg potato chips - say the potato itself was not upto standard they go to black and gold, or the flavour was not done correctly etc.

    • +1

      Sorry but where did you dream up this information?

      Black and Gold can be considerably lower quality then other brands.

      Also your explanation as to where generic brands come from is wrong

      Black and Gold decide what they want their product to be. The ONLY time this doesn't happen is milk, its the only product in the country where you basically have no choice as to what goes in the package.

      Generic brands never receive a branded product inside the generic packaging unless you are talking about things like milk, meat etc.

  • +1

    I received $30 free credit (handing out cards on the street so can't share :() to use shopwings.com.au, which delivers groceries from Aldi as an option. Apart from the delivery charge, they charge above the listed price on products as well so it's not for the more budget-conscious of us. What interests me most is how the employed "shoppers" will manage to deal with the queues in my local Aldi. There are usually only 2 or 3 aisles open and I've consistently waited a good 15 minutes or more in the past so I only use Aldi occasionally for its unique items.

    This was the worst thing about shopping in continental Europe when I was there years ago (despite the budget prices) - you could never just pop in and out to get some milk.

  • +1

    Its interesting how people either have no idea what food tastes like, or don't understand product comparison.

    You would struggle to find an Aldi product that is not similar in taste to a similarly priced woolworths or coles product. I think the issue is that people are comparing an Aldi brand to Woolworths Select or Woolworths Gold, these are private label but are not the same price. If you want a certain quality product at a certain price Aldi may or may not stock it as they are not a large store. At Coles or Woolworths you have full choice from low quality to high quality.

    Personally I rarely shop at Aldi simply because Aldi don't normally sell the type of food I like to buy.

  • +1

    Also, it's ironically a lot easier to find Australian grown/made products in Aldi. Tinned tomatoes for example.

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