Millions of Aussies are making major cost of living mistake

Millions of Aussies are still making one big mistake when it comes to their grocery shopping, new data has found.

Millions of Aussies may have changed their spending habits in some way to beat cost of living pressures, but new data has found more than 90 per cent of us are still making one big mistake.

And we’re missing out on a share of about $3.1 billion in savings because of it.

A survey from YouGov, released by ALDI Australia on Thursday, found that although the vast majority of Australians (88 per cent) were looking for different ways to manage their budgets and cut costs, less than 1 in 10 people (9 per cent) had changed where they buy groceries in the last year.

Aussies are finding ways to cut costs at the supermarket, but are still making a big mistake. Picture: iStock.

Instead of switching which supermarket they shop at, Australian households are tightening budgets (24 per cent), shopping less often (26 per cent), even buying less fresh fruits and vegetables (16 per cent) and meat (50 per cent).

ALDI Australia Group Director of Customer interactions Simon Padovani-Ginies said these compromises were particularly concerning given the proven savings that were out there if customers switched supermarkets.

“We’re unhappy to see data that says Australians are limiting the amount of veggies and proteins they buy because they can’t afford them; that’s not good for Aussie families,” he said.

Mr Padovani-Ginies said ALDI’s internal data showed those who had switched to the German supermarket giant “are not having to make those compromises” because of its competitive prices.

“There has been growth in our fresh produce and meat categories, indicating there is certainly appetite for more affordable options for the ‘centre of the plate’, and ALDI delivers that.

“We are seeing more shoppers switching to ALDI and staying with us as they quickly discover they can get all their grocery essentials and save without having to sacrifice on their favourite meals.”

ALDI has seen more people come through the doors to buy fresh produce, internal data shows.

Last year, data analysed by PwC found ALDI Australia had delivered $3.1 billion in savings directly to its customers – and the downward pressure it put on grocery prices saved shoppers $7.8 billion over its last 20 years operating in Australia.

Mr Padovani-Ginies said though there were more Australians coming through the doors to beat brutal cost of living pressures, even more should capitalise on the supermarket savings.

“It is obvious many Aussies are under financial pressure; we know that and that’s why we have made the fierce commitment not to be beaten on the cost of the weekly shop,” he said.

“The fact is, ALDI is doing what it has always done, remain serious about delivering savings to as many customers as possible.”

A comparison* of a grocery haul from ALDI and its competitors – using the competitors’ lowest price options as of May 31 – found a 41 per cent difference in price.

Shopping at ALDI has saved Australians billions on their grocery bills since stores opened 20 years ago.

The YouGov survey data found 71 per cent of Australians had felt financial pressure in the past year, with 84 per cent reporting they had to dip into their savings to make ends meet.

Alarmingly, one in five people (20 per cent) reported experiencing losing more than $5000 in their savings over the last 12 months.

To fight the cost of living pressures, the vast majority of Australians were looking at different ways to reduce their spending in the next 12 months, including switching their utility and home loan providers – considered by 23 per cent and 17 per cent of respondents, respectively.

Almost half (49 per cent) of survey respondents had decided to cut back on takeaway or eating out (49 per cent), and 30 per cent are looking to cancel streaming services.

But, making the supermarket switch for cheaper prices, Mr Padovani-Ginies concluded, was “simply the smart thing to do if you want to save real dollars.”

*Based on prices available from 10 stores in 2 major supermarket chains in the NSW, VIC, QLD, SA and WA regions on 31/5/23. The cheapest competitive price has been used for “other supermarkets”. Range and prices may differ between ALDI stores.