Christmas supermarket war: What you’ll pay at Woolworths, Coles and Aldi

A Christmas price war is underway at Australia's top supermarkets, with hams selling for the lowest price in years. See how other festive staples compare.

The major supermarkets have entered a fierce price-matching war that could mean a cheaper Christmas for cost-of-living wary Australians.

Two months out from the festive season, Woolworths, Coles and Aldi are already going dollar for dollar on staples, such as puddings and mince pies, while hams are selling at their lowest prices in four years.

Coles has at least 10 items cheaper than they were last Christmas, including prawns, which are $6 less per kilo.

And all three retailers are pitching three-course menus to feed a family of eight for $100 or under.

It is welcome relief for shoppers, who have endured massive grocery price hikes this year as inflation grew by 5.6 per cent.

Bread and cereal prices are up 8.9 per cent and dairy products have climbed 8 per cent.

The hip pocket hurt has been compounded by skyrocketing petrol prices (up 19.7 per cent), electricity bills (up 18 per cent) and rents (7.6 per cent).

The major supermarkets have entered a fierce price-matching war this Christmas, with hams selling at their lowest price in four years. Picture: Supplied

Finder.com money expert Angus Kidman said mortgage pressures were also hitting families, especially those whose fixed rates had expired.

“Mortgage pressures are really starting to bite – there’s a gap between RBA rate rises and when your mortgage suddenly becomes hideously high, and many Australians hit this point in the last three months,” Mr Kidman said.

“So I’d expect many families to be planning a cheaper Christmas right now because they’re already feeling the pinch and there’s no “turkey top-up” or ”prawns putaway” in the budget any more.

“As households grapple to keep up with rising costs, this Christmas will look a little different to recent years.”

A Finder.com survey found Australians expected to spend $1479 this Christmas on presents, food, alcohol, eating out and travel, collectively.

More than two thirds of respondents (69 per cent) were preparing to slash their spending, a quarter (26 per cent) would look for bargains early at the Black Friday and Cyber Monday sales in November, and a further quarter (29 per cent) would start buying food and presents early.

Fifteen per cent of those surveyed said they did not plan to buy presents this year.

The Australian Retailers Association predicts Australians will spend $66.8 billion between November and Christmas Eve — 0.1 per cent more than last year.

Woolworths Supermarkets chief commercial officer Paul Harker said he expects customers to manage their Christmas budgets by “buying longer shelf life products in advance to they can space out their spending”.

“Our research shows that our customers are using more hacks to save on their grocery shops, including buying products on special and meal planning,” Mr Harker said.

A Coles spokesperson said a recent survey of its customers found 20 per cent would be preparing more food at home this festive season.

“At a time when cost of living is adding pressure to Aussie families and their grocery budgets, Coles has worked hard to ensure it delivers great value on Christmas favourites,” the spokesperson said.

ALDI said its customers were “looking for quality and value this Christmas … without the luxury price tags”.

“As Australia’s low-cost leader, we know that the rising cost of living is a real worry for many Aussies, and we are acutely aware of how it affects our customers when it comes to preparing for the holidays,” customer interactions director Adrian Christie said.

The Endeavour Group, parent company of alcohol retailer Dan Murphy’s, expects customers to celebrate at home with, perhaps, a “stand out champagne accompanied by more value-driven options among other categories”.

“We also know more than 35 per cent of customers are spending more time researching products before they make choices on what to buy … with that in mind, we are seeing customers opting to “host and toast” at home for Christmas,” Endeavour’s director of merchandise and buying Tim Carroll said.

“It means more people will be researching and discovering how to have the perfect day with their friends and loved ones to create new memories in their own surroundings (rather than book restaurants).”

Laura Blasdale and Mathieu Geurin are feeling the pinch this Christmas, with their fixed mortgage rate to come off in December.

“It’s definitely a much bigger financial consideration that it ever has been for us. It will be a big jump when it (fixed rate) comes off,” Ms Blasdale, of Dee Why in Sydney’s north, said.

It comes after they were hit with “phenomenal” rises in recent electricity bills that prompted them to shop around for a cheaper deal.

Laura Blasdale with her Christmas shop and two children Charlie Guerin, 3, and Freya Guerin, 1, at home in Dee Why, in Sydney's north. Picture: Justin Lloyd

The family of four are looking forward to a big Christmas, with relatives coming from France, but to soften to financial blow Ms Blasdale has been shopping for gifts throughout the year.

“If I see something I know someone will like, I’ll buy it and put it away until Christmas time. Little extra expenses throughout the year won’t break your bank but going hell for leather at the end of the year might,” the mum of two said.

“I bought some Christmas pudding at the markets the other day, put an order in for mince pies and if I saw some meat that I am planning on having at Christmas on sale, I would buy it in advance and freeze it ready for Christmas., such as pork roast.”

She said she also shops around for the best deals and uses social media accounts such as supermarket.swap to find good deals.

Jess Burnage with kids, Damien Curtis, 11, Lincoln Burnage, 7, and Spencer Burnage, 16 months, with their Christmas feast with items from Woolworths’ $100 menu. Picture: Ben Clark

Jess and Corey Burnage will feel the financial strain especially hard this Christmas.

Their mortgage fixed rate ended mid-year and Ms Burnage stopped working to take care of their 16-month-old daughter Spencer.

“Our minimum repayments have gone up about $70 a week, and with the electricity bill going up, along with the rise of food, petrol and clothes – it’s been a struggle. We’re feeling the pinch financially,” Ms Burnage, of Adelaide, said.

To try and offset those costs, the mother of three turned to rewards programs to earn points at the supermarket and save.

Ms Burnage has banked $1100 worth of points to now spend on her Christmas needs, by activating Woolworths’ Everyday Rewards offers throughout the year.

“Over $1000 is incredible to have breathing space, to pull us through the tough weeks. It frees up a bit more cash so I can get a nice present for my kids and husband. I want to treat them with a PS5,” Ms Burnage said.

In the lead up to Christmas, she plans to spread out the purchases of festive pantry staples such as fruit mince pies and wrapping paper, while also keeping an eye out for deals on meat that she can freeze for the big day.

Originally published as Christmas supermarket war: What you’ll pay at Woolworths, Coles and Aldi