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The Guardian - AU
The Guardian - AU
National
Catie McLeod

Latest Choice survey reveals Australia’s grocery price divide at major supermarkets

Close up of woman holding basket in supermarket
Choice reports that Aldi is the cheapest supermarket and that shoppers in Western Australia are paying more for groceries. Photograph: Jackyenjoyphotography/Getty Images

Western Australians are paying more for groceries than people in the eastern states, while Aldi shoppers across Australia continue to get the best deal on average, Choice has found.

The consumer advocacy group on Wednesday released its fifth quarterly report into supermarket prices, which it assesses by buying 14 common groceries from different supermarkets. The report is funded by the federal government.

In March this year, excluding specials, the basket of items cost $55.35 at Aldi, $58.92 at Woolworths, $59.22 at Coles and $69.74 at IGA.

When the savings from available specials were factored in, the Aldi basket cost $54.44, compared with $57.67 at Coles, $58.86 at Woolworths and $67.54 at IGA.

To conduct its survey, Choice sent undercover shoppers into 104 supermarkets – 27 Woolworths, 27 Coles, 23 Aldi and 27 IGA stores – in 27 locations across the country.

The Choice report found Western Australians paid more in March than shoppers in the mainland eastern states at Woolworths, Coles and IGA.

While the prices varied very little between Aldi stores, Western Australian shoppers paid up to $2.70 more for apples – considered a “staple item” – at the discount chain than in other locations, making their survey basket more expensive overall.

Shoppers in New South Wales paid less than other states at Woolworths and IGA; those in the ACT and NSW got the best deal at Aldi; and in Queensland, shoppers paid less than their fellow Australians at Coles, according to the report.

The difference in prices between Coles and Woolworths and discount chain Aldi had narrowed from December 2024, when Choice conducted its last survey.

In December, Choice found a basket without specials cost $51.36 at Aldi, $69.63 at Woolworths and $67.84 at Coles.

After including IGA in the survey in June last year, Choice on Wednesday said it had again changed its approach – based on consumer feedback – by switching some of the 14 items in the basket seasonally based on what people are buying.

For example, the latest basket included products people are more likely to buy in winter, such as porridge oats and hot chocolate, Choice said.

Choice will conduct its next quarterly survey after Woolworths and Coles announced they would cut the prices of hundreds of items, as the major supermarkets look to win back customer trust.

Aldi has responded by lowering its prices, according to analysis by JP Morgan of a range of categories including meat, cheese, bread, frozen products and nappies.

Released on Wednesday, the investment bank report found Woolworths prices were 8.6% higher than those at Aldi this month, while Coles prices were 8.2% higher.

While there are hopes of intensifying competition in the supermarket sector, experts have previously said there was not enough competitive pressure in the domestic market to have a genuine “price war”.

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