A recent government-funded analysis found that Coles and Woolworths are not the most cost-effective grocery options in Australia. This comes only days after both retail were sued over allegedly deceptive discount policies.
Choice, a consumer advocacy group, has issued the second half of its quarterly supermarket pricing comparison report, which examines the cost of a basket of 14 typical items across 104 locations nationally.
The findings showed that Aldi was the most affordable option. The customers are paying an average of $50.79 for the basket in June, a slight drop from $51.51 in March.
According to the report, shoppers at Coles and Woolworths were paying approximately 30 percent more for the same basket. Ashley de Silva, CEO of Choice, said that Woolworths has dropped from second to third place when comparing pricing to specials.
Coles, on the other hand, witnessed a little decrease in price. The company basket costing $66.22, down from $68.52 in March. IGA was the most expensive, charging customers $78.95 for the identical basket, demonstrating regional pricing differences.
De Silva underlined the need of shopping around to save money on groceries. Silva noted that purchasing things on sale can significantly reduce overall expenses. “Discounts, such as those on tea bags at Coles during our survey, significantly impacted the survey results,” I heard him say.
These remarks follow legal action taken by the Australian Competition and Consumer Commission (ACCC) against Coles and Woolworths. ACCC accused them of offering “illusory” discounts on over 240 products during a 20-month period. The ACCC claims that both supermarkets artificially inflated prices before quickly lowering them for promotions. For example, “prices dropped” and “down down,” often at prices higher than the original cost.
Commissioner Gina Cass-Gottlieb stated that both supermarkets reportedly arranged the promotions in advance. The companies temporarily boosted prices to establish a higher “was” pricing. Woolworths announced that it will continue to cooperate with the ACCC, whilst Coles stated that it planned to defend the legal proceedings.