If you’ve felt like your grocery bill at Woolies is a little steeper lately, you’re not imagining it. According to the latest quarterly report from consumer watchdog Choice, the average basket of goods at Woolworths is now more expensive than it was a year ago - unlike at Coles and Aldi, where prices have actually come down.
Choice has been keeping tabs on supermarket prices since March last year, tracking the cost of 14 everyday grocery items. In their most recent update, they found that while Aldi’s prices barely moved (dropping a tiny 0.3%), Coles actually got a bit cheaper - down 2.5% for items on special.
But Woolworths? Not so lucky. The same basket of items on special went up by 3.7%, from $64.93 to $67.34. Even without specials, Woolies saw a smaller increase of 1.5%.
Choice CEO Ashley de Silva pointed out this is the first time the pricing gap between Coles and Woolworths has become so noticeable.
“Coles and Woolies used to be neck and neck - just 75 cents apart without specials - but now it’s closer to $1.79,” he said. “That might not sound like much, but over a year of weekly shops, that difference can stack up to more than $90.”
To gather the data, Choice sent undercover shoppers to 104 supermarkets in 27 locations across Australia. While IGA hasn’t been part of every report, they did manage to offer a cheaper basket this time compared to June.
This pricing update comes hot on the heels of the ACCC’s deep dive into the supermarket sector. The competition watchdog has been investigating whether Australia’s major supermarkets are playing fair - especially in light of price gouging concerns.
While the ACCC didn’t outright say price gouging is happening, they did find Aussie supermarkets are among the most profitable in the world and don’t have much reason to fight over prices. Woolies, in particular, saw its profit margins rise.
The report included 20 recommendations aimed at improving price transparency and giving shoppers clearer info - especially around specials and unit pricing.
Choice is all for it. De Silva said clearer, more honest pricing would help shoppers make better choices and push supermarkets to compete properly.
“The way specials are labelled now doesn’t always tell you if the price per unit changed, or what kind of discount you’re really getting,” he said. “Without rules forcing supermarkets to be upfront, it’s unlikely they’ll do it themselves.”
The federal government hasn’t yet committed to all the ACCC’s suggestions, but has given them a general thumbs-up. In the meantime, Woolworths, Coles, and Metcash are still mulling over the recommendations.
