Aldi nabs ‘most trusted supermarket’ title as Coles and Woolies suffer

Aldi has been named Roy Morgan’s most trusted supermarket brand for the first time, as Coles and Woolies drag down trust in the entire category.

Aldi has been named as Australia's most trusted supermarket brand. Picture: NewsWire / Glenn Campbell

Aldi is now Australia’s most trusted supermarket brand, following the rapid decline in consumer sentiment for supermarket giants Coles and Woolworths.

The German-owned supermarket has topped the annual ranking by Roy Morgan for the first time, climbing from third just 12 months ago.

The ranking reveals the steep decline of Woolworths and Coles in consumers’ eyes, as the impact of price gouging allegations and legal action from the Australian Competition & Consumer Commission have seen the supermarket giants plummet from being the two most trusted brands in 2023 to the fourth and fifth most distrusted brands.

The impact of Coles and Woolworths’ behaviour has been felt across the entire category, according to Roy Morgan chief executive Michele Levine. “The supermarket industry as a whole has experienced a notable decline in consumer trust, plummeting from the most trusted sector in 2023 to the ninth most distrusted in 2024. This shift has been fuelled by various scandals for Coles and Woolworths related to alleged price gouging and unfair contract practices that first surfaced in late 2023,” she said. “This shift has inadvertently bolstered Aldi’s standing, as many consumers now see it as a reliable alternative to its larger competitors.”

Customers had responded to Aldi’s commitment to quality, and often highlighting its straightforward marketing and competitive pricing compared to Coles and Woolworths, Ms Levine added.

“Feedback from shoppers underscores this sentiment, with comments like ‘Good pricing; they don’t price gouge like Coles and Woolworths,’ and ‘They don’t have ridiculous mark-ups like Coles and Woolworths’. As consumer preferences evolve, Aldi’s reputation for affordability and reliability might be factors in maintaining its current relatively strong position in consumer trust.”

The Roy Morgan rankings echo research shared exclusively by The Australian last month, which found that nearly 40 per cent of consumers had changed their views of the two supermarket giants as a result of the ACCC legal action. It found 26.7 per cent of shoppers stated they would alter their shopping behaviours to avoid supporting Coles and Woolworths.

The Roy Morgan Trusted Brand Awards recognise consumer trust levels across industries such as cars, banks, department stores, travel and tourism, telecommunications and media, among a host of others.

A total of 20 brands were awarded the most trustworthy in the categories including Toyota, Bendigo Bank, Kmart, Virgin Australia, Aussie Broadband and the ABC.

NRMA was the most trusted insurance brand, Bupa the most trusted private health insurer and Australian Super tops the superannuation and wealth category.

The awards recognised Bunnings as the “Best of the Best” most trusted brand in recognition of the retailer’s consistently high ranking in recent years.