Australia’s cheapest supermarket revealed by new Choice report

Secret shoppers have been deployed across the country to find out who the cheapest supermarket in Australia is with a simple basket test.

New research has confirmed Aldi is Australia’s cheapest supermarket — but how much do you actually save?

Consumer advocacy group Choice has just released its first “basket of goods” report, a new quarterly, government-funded report on supermarket prices across the country.

As part of the research, Choice sent mystery shoppers to 81 regional and metropolitan supermarkets across the country, including Aldi, Woolworths, and Coles, to record prices for 14 common grocery items.

The items included apples, carrots, Weet-Bix, sliced white bread, flour, penne pasta, white sugar, tea bags, tinned diced tomatoes, a block of tasty cheese, full-cream dairy milk, frozen peas, beef mince and butter.

The research revealed that Aldi’s basket was about 25 per cent cheaper than baskets bought at Coles or Woolworths, saving the consumer around $17.

Australia’s cheapest supermarket is Aldi according to a new quarterly government funded ‘basket of goods’ report conducted by consumer watchdog Choice. Picture: news.com.au

“Aldi was the clear leader on value for money in our first supermarket basket survey for 2024, with our basket of 14 products costing just $51.51 – coming in at about 25 per cent cheaper than Coles or Woolworths,” the watchdog’s CEO, Ashley de Silva, said.

“Grocery prices at Coles and Woolworths are very closely matched, with only 75 cents separating the prices of our basket of 14 items without specials.

Coles was the most expensive at $69.33, while the basket at Woolworths came in at $68.58.”

The basket of goods test showed shoppers save 25 per cent on their shop. Picture: Reddit

The research was funded by the federal government as part of its action on supermarket pricing.

Prime Minister Anthony Albanese earlier this year announced a review into the Food and Grocery Code of Conduct, warning supermarkets to pass on any savings they make from suppliers to consumers.

The code is currently voluntary, an interim report called for it to be made mandatory, which would result in huge financial penalties on supermarkets with annual revenues above $5bn that breach the agreement.

The final review is reportedly expected this later week.

Coles was found to be the most expensive when tested by secret shoppers purchasing 14 staple items across the country. Picture: Shae Beplate.

The results were measured from March this year and were published by Choice after the consumer group received $1.1 million in federal government funding over three years to help inform shoppers of the best deal.

Aldi welcomed the findings, issuing a statement stating it “reaffirms Aldi’s Price Promise” which ensures the supermarket “won’t be beaten on the cost of your weekly shop”.

“The data reflected across this basket of goods is indicative of the savings across our entire range,” Jordan Lack, Managing Director at Aldi Australia, said.

“We take our role as Australia’s most affordable supermarket seriously and every day, every element of our business is oriented around how we can continue to deliver on our ambition to provide high quality groceries at the lowest possible price.”

The research was funded by the government as part of its action on supermarket pricing. Picture: Supplied

Coles also responded to the results, stating the supermarket was “working hard to deliver value to our customers, particularly with ongoing cost of living pressures” such as higher mortgages and rents, energy and fuel.

“Coles offers a wide range of choices, including affordable own brand essentials, premium selections, and a range of popular brands, in addition to services including home delivery and Click & Collect,” a spokesperson said.

“We welcome Choice’s contribution; however, it is unclear whether like-for-like products are being compared. Our analysis last week comparing the same basket in NSW shows customers can purchase these products for $59.35 at Coles.”

The next quarterly grocery price report is set to be released by the end of September.

It followed a recent Choice Consumer Pulse survey that found the cost of food and groceries was a huge concern for a huge 87 per cent of households.

Trust levels in supermarkets has also plummeted in the last 12 months, the survey determined, with 39 per cent of respondents reporting they don’t trust supermarkets to provide the best service and products to meet their needs.