In a major pre-Christmas price check, the discount supermarket chain Aldi has been identified as offering the most affordable basket of festive groceries, significantly undercutting its larger rivals. The findings come as the Australian government prepares to implement strict new rules to prevent excessive pricing by major retailers.
The Price Gap in Black and White
The latest quarterly survey from consumer advocacy group Choice revealed a substantial cost difference between supermarkets. The research, which examined prices at 104 stores across 27 locations in September, compared a basket of 20 common items.
This basket included seven everyday essentials like milk and bread, plus 13 popular festive entertaining products such as crackers, camembert, and party pies. Aldi's total came to just $72.41. In contrast, Woolworths' basket cost $98.98, Coles' was $100.04, and IGA's reached $109.25.
"When including specials, Aldi was still the cheapest, with the price remaining the same as our basket without specials at $72.41," stated Choice’s editorial director, Mark Serrels. The ranking of supermarkets remained unchanged whether special offers were factored in or not.
Supermarkets Face New Legal Reckoning
This price transparency initiative, funded by the federal government, arrives as supermarkets are put on formal notice regarding price gouging. From July next year, large retailers will be banned from charging prices deemed excessively high compared to their supply costs.
The penalties for breaches are severe, with fines of up to $10 million per incident or 10% of a company's annual turnover. The Australian Retailers Association and National Retail Association have voiced strong opposition to the government's move.
Background of a Powerful Duopoly
The survey underscores long-standing competition concerns. A landmark inquiry by the Australian Competition and Consumer Commission (ACCC) in March concluded that the market power held by Coles and Woolworths provided them with little incentive to compete aggressively on price. The inquiry found they were among the world's most profitable supermarkets.
With the new anti-price gouging laws on the horizon, this quarterly price monitoring by Choice is set to become a crucial tool for consumers seeking value, especially during high-spending periods like the festive season. The significant gap between Aldi and the major chains highlights the ongoing cost-of-living pressures facing households.
