Calls for Aldi to establish presence in Tasmania as CHOICE report highlights lack of competition
German grocery giant Aldi has nearly 600 stores across Australia but Tasmania is the only state without one, prompting a local senator to call for greater competition in the supermarket sector.
Tasmania
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A survey of supermarket prices across the country has highlighted Tasmania’s lack of a more affordable alternative to Coles and Woolworths, sparking renewed calls for popular German chain Aldi to establish a presence in the state.
Consumer group CHOICE has released its second quarterly report on the price of groceries at Australian supermarkets, based on visits to 104 stores all over the country, including Aldi, IGA, Coles, and Woolworths.
So-called undercover shoppers descended on the supermarkets in June and filled their baskets with 14 items, including packaged national brand or home brand products such as beef mince and milk and two fresh fruit and vegetable items (apples and carrots).
The report found that Aldi – which does not have a presence in Tasmania – remained the most affordable supermarket chain, with the total price of an average basket of groceries costing $50.79.
Baskets from Coles and Woolworths cost $66.22 and $68.37, respectively, while they cost $78.95 at IGA.
Prices in Tasmania compared favourably to the national averages, with an assortment of groceries costing $64.90 from Coles on average here, $68.25 from Woolworths, and $75.18 from IGA.
CHOICE CEO Ashley de Silva said buying items on special could make a significant difference to overall grocery costs and “reinforces the benefits of shopping around where possible”.
“Unfortunately, CHOICE has previously found supermarket labels are often confusing, making it difficult to tell if there is a true discount on offer or not,” he said.
“Our second quarterly supermarket survey highlights the importance of clear, simple labelling, that leaves the customer in no doubt about whether a product is actually on special.”
While Aldi has almost 600 stores across Australia, Tasmania is the only state without one.
Aldi CEO Anna McGrath told a Senate inquiry in April that the chain had “no current plan” to open a store in Tasmania, citing supply chain “complexities”.
“That’s not to say that we don’t continuously review where we may expand in the future,” she said.
Tasmanian independent senator Tammy Tyrrell said it was difficult for people living in regional towns with only one or two supermarkets to shop around for better deals.
“This is why we need more competition in Tassie. When there are more supermarket options available, we know prices go down,” she said.
“We already pay a ‘Tassie tax’ on groceries because it costs businesses through the nose to get food across the Bass Strait. They can’t absorb all these costs – some of it has to go on the customer.”
Senator Tyrrell has established a Senate inquiry into the Tasmanian Freight Equalisation Scheme, which she says will examine “how to make [it] fairer for small businesses” and help bring down grocery prices.
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