Cheapest Aussie Supermarket...

[Tamara (Homes Down Under)]

Does anyone have an Aldi near them?

They have started the build at Noarlunga so I will have one on my doorstep soon.

 

Anyone have any thoughts on their products and quality?

 

Choice price survey crowns Aldi as Australia’s cheapest supermarket

 

 

 

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• KAREN COLLIER
  
• Herald Sun
  
• June 04, 2015 12:52AM
  

 

 

 

 

 

 

Aldi takes the cake as Australia’s cheapest supermarket, Choice reveals.

 

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DISCOUNT grocer Aldi has been crowned cheapest supermarket in a major price survey as the popularity of private labels grows.

 

A grocery basket at the German-owned chain was up to half the cost of major brands at Coles and Woolworths, a Choice study found.

But the dominant duo’s ‘own brand’ ranges can also save their customers at the checkout.

Coles and Woolies shoppers swapping leading brands for the heavyweights’ private label equivalents cut their bill by about a third, Choice said.

“Private labels such as Woolworths’ Select and Coles brand account for 21 per cent of packaged grocery sales in Australia. This will keep going north given cost of living concerns,” Choice spokesman Tom Godfrey said.

“Reputation has improved, there are more gourmet products, and many people believe the quality is as good as name brands.

“The downside is this can impact choice if smaller or more niche brands are squeezed.”

Supermarket price survey.

 

 

 

The home brands of both Coles and Woolworths can save shoppers.

 

 

 

Aldi’s basket averaged $87.68 nationally compared with big brands that cost $174.97 at Coles and $176.77 at Woolworths, excluding discounts.

IGA was most expensive at $188.61.

Olive oil, dishwasher tablets, laundry powder, frozen fish fillets and cheese blocks had the biggest price gaps.

Leading brand specials reduced Coles’ bill by $12.41, and Woolworths’ by $4.61.

Victorians paid an average 20c to $3.40 more for the big brand basket than the ACT, Tasmania and New South Wales.

The mid-tier Woolworths’ Select and Coles brand were used for most private label comparisons.

Choice recorded prices at 93 supermarkets across 17 Australian locations in March.

The basket of 31 items included three fresh foods and common purchases such as bread, cheese, chocolate, canned tuna, toilet paper and frozen peas.

Woolworths — which recently pledged to “neutralise” Coles on price and revamp budget private labels to better compete with Aldi — said comparing “a handful of products” was rarely an accurate way to judge prices.

“When you properly compare like for like products we offer customers a range that competes well,” it said.

Coles said households could save an average $570 annually shopping at the chain compared with six years ago, and it was “absolutely committed to further reducing prices”.

Recent Citi research found Aldi prices were 19 per cent lower than Coles brand but 23 per cent higher than Coles’ budget Smartbuy.

Aldi was 28 per cent cheaper than Woolworths’ Select, but 13 per cent more than Homebrand.

AVERAGE GROCERY BASKET PRICE

Aldi private label $87.68

Coles private label $114.24

Woolworths private label $119.40

Coles leading brands $174.97

Woolworths leading brands $176.77

Source: Choice. 28 leading-brand products or their private label equivalents across all three chains plus three fresh food items on March 7-8. Prices shown exclude specials.

[snifter]

They have really grown in popularity in the UK in recent years.

 

In all honesty I think their food is cheap for a reason. Least how I see it It was often imported pre packed goods, the packaging was usually in German. Sometimes something else. But a tin of tomatoes is a tin of tomatoes I guess?

 

In all honesty, I didn't really like shopping there on a regular basis and preferred sticking with brands I knew and that I liked the taste of when I did go in. I'd rather spend a bit extra and have a Heinz ketchup over some vinegery bright red goop being passed off as ketchup.

 

I found I cherry picked the stuff I did know and like and was cheaper there and then bought the other things in my usual supermarkets. I used to stop in an Aldi once a month or so to check the deals, the stock and so on but was never a convert to shopping there on a regular basis though some people I know did do their weekly shop there. I felt the same way about Asda too. Used to swing into a store once a month or so to check the offers but didn't like their own brand stuff much and thought it was cheap and pretty rank on more than one occasion. I tend to make a lot of meals from scratch with decent ingredients but the pre packed own brand stuff usually left me rather disappointed.

 

FWIW, I'd say considering looking into a Costco card. Buy a years supply of toilet roll there and the savings on that cover the cost of the card or thereabouts Costco is big in the UK too now and obviously a different set up to Aldi but used to love hitting there and stocking up.

Edited June 4, 2015 by snifter
typo

[snifter]

I'll go check out Aldi when it opens in Noarlunga for sure. See what they are stocking and try a few things out to see how they compare. But not sure I'd be doing my weekly shop of most goods from there. Not unless they are stocking the brands I like and for a decent price, buts in my experience its mostly brands I've never heard of and not sure I want to keep taking a punt on those to test them all.

[Rabeah]

Fantastic news :-) I can't wait until the 1st Aldi store opens!!!

Again at last great chocolate to eat. I usually stock up at Aldi in NSW or Victoria with German chocolate as the one you get here is really crap (the only one I liked from Coles imported from Belgium was taken out of the product range without notice). Last year in Sydney we purchased beautiful chopping boards at Aldi, cheap & nice.

Aldi was my favourite store in Europe/Germany and I'm really looking forward to it, I also like the 'themes' they have, for example 'Oktoberfest' where you get Pretzel, Bavarian mustard & sausages etc.

The only disadvantage I remember was the fruit isn't of good quality and only a small range of meat. But I don't bother and won't buy everything from Aldi but for essentials & sweets I'd drive through one end from Adelaide to the other!!!

[Karen S-D]

From a UK Aldi perspective, when I first shopped at Aldi around 5 years ago I wasn't impressed, but over the last couple of years their products have improved SO much. There are some brands that I go elsewhere and buy but for the main part I think they are brilliant quality and price for meat, poultry, cooked meats, selection and quality of cheeses, cooked meats, tinned tomatoes and their fruit and veg is great value. I am a convert and am so excited that there will be Aldi stores in Adelaide!

Edited June 4, 2015 by Karen S-D

[Tamara (Homes Down Under)]

I think that Aldi has plans for a large scale rollout of stores in Adelaide.

The one that they have started to build in Noarlunga is part of the Colonnades expansion which also includes a Masters hardware store. Aldi announced that they would be opening stores in Hallet Cove and Seaford Heights but I thought that the Seaford store would be the first one to open? Competition for Coles and Woolworths will be a good thing!

[Tamara (Homes Down Under)]

 

FWIW, I'd say considering looking into a Costco card. Buy a years supply of toilet roll there and the savings on that cover the cost of the card or thereabouts Costco is big in the UK too now and obviously a different set up to Aldi but used to love hitting there and stocking up.

 

If it's bulk shopping that people are looking for then Campbells may be the answer. You need an ABN to get an purchase card but the bulk savings especially their specials are considerable. They also have goods that I haven't seen at the mainstream shops...plenty of overseas sweets that you don't see everywhere. My daughter took me there when she was catering for a birthday party.

If you know someone with an ABN then they can get 5 access / purchase cards. You can have a look around with a visitors pass just like Costco.

Campbells is like Makro but you can purchase smaller quantities and don't have to buy a box full!

 

 

http://www.campbells.com.au/

[Rammygirl]

Aldi prices are cheap because of the business model. You won't see lots of staff in store and they don't stand around gossiping either! Managers will stack shelves and operate checkouts. Oh and don't expect them to pack your bags for you either! They also bulk buy and their own brands have improved a LOT. They pass those savings on to customers, simple.

 

Sad I know but we have driven to the one in Vic (Horsham) twice now and filled the car. The wines have come out top in many awards here, best place to get a good Rioja for less than $10. Their own brand or lesser known whiskey and Gin are good value too, but the bigger brands can be got at Dan Murphys for similar prices.

 

we too buy lots of chocolate and deli meats, are restricted because we can't bring fruit and most veg over the border but it looked good last time we went. Cereals are very good too and cheap. 'The Muddle in The Middle' can throw up some real bargains too. Their guarantees are good too. We bought some headphones and they went wrong after 8 months. Got a new pair sent out no problem.

 

I was very sceptical in the UK but grew to love them, although you can't get a full shop always and choice can be limited. I had a very foodie friend who only shopped at Aldi and Waitrose!

 

They do do also improve things as they go along, they are using different suppliers here in Oz so you can't get the same stuff as in the UK but they are getting better.

 

Nearest one to us will be Hawthorn just South of the CBD. Can't wait, although I will miss the drive and the time to chat with OH and the stop at Dalenes cafe in Keith..........................

[soo_the_panda]

Yep, I'm a big Aldi fan. We always stock up when visiting my partner's family in Victoria. I wouldn't buy everything from there - I prefer to buy fruit and veg from our local greengrocer, for example, but it's fabulous for the basics. Whilst there are some things I prefer to buy the 'best brand' version of (eg Hellmans mayo, Heinz baked beans etc) I'm really not fussed about tinned veggies and pulses, tissues, kitchen roll, crackers, jam etc. There are definitely some real bargains there and I plan to do a lot of our shopping there once Aldi arrives in SA. Their own brand nappies are also the cheapest I've seen - 18c each - half the price of Huggies.

[Rammygirl]

I do hope they find a work around for the alcohol sales though, I think they have dedicated tills in some states. I know COSTCO wanted to stock wine and spirits but don't yet. They are considering a separate sales area for this. SA rules are pretty strict, although I have noticed some Woolworths have open plan entry to BWS in newer sores now.

[NicF]

I do hope they find a work around for the alcohol sales though, I think they have dedicated tills in some states. I know COSTCO wanted to stock wine and spirits but don't yet. They are considering a separate sales area for this. SA rules are pretty strict, although I have noticed some Woolworths have open plan entry to BWS in newer sores now.

 

It's worth noting with the BWS stores inside the Woolworths stores that you have to pay for your alcohol at the BWS till and you cannot pay for items from the Woolworths area at the BWS till. If Aldi want to sell alcohol in the SA stores they will have to have a seperate section for it in the same way Woolworths do with BWS.

 

I've never shopped in an Aldi and doubt I will start now. I don't think there is going to be one near us anyway but I prefer to do most of my shopping in one big hit once a week and don't think I would be able to at an Aldi store. I would consider using it for bits and pieces at other times but unless they put one in Rundell Mall or walking distance from my house I don't think I would actually go there. I am hoping though that the extra competition brings down the prices at Coles and Woolworths.

[NicF]

Apparently the reason Aldi are not currently planning any stores in the Eastern suburbs is due to planning regulations http://www.adelaidenow.com.au/messenger/east-hills/why-discount-grocer-aldi-isnt-setting-up-shop-in-adelaides-leafy-east/story-fni9lkyu-1227383512009?sv=8f6be51b79e2fef8ec56741ac7406b46.

 

Will be be interesting to see if things change in the future.

[Rabeah]

Competition for Coles and Woolworths will be a good thing!

 

Exactly! Woolworths and Coles went down with their prices at least 5 % at the east coast wherever an Aldi store was as close as in the 5 km radius.

 

For all the Aldi scepticals from the UK: just stay long enough like me as a chocolate lover and you learn to not only appreciate Aldi but to love it! Not only bigger blocks of quality chocolates rather the taste will convince you and Haribo is available in 300 grams for the price of 170 grams at Woolworths or Coles for the same price!

Edited June 5, 2015 by Rabeah

[kelbert]

I agree Aldi in the UK in the last few years became much more upmarket with lovely gourmet products for a fraction of the price. The only downside I remember is the staff throwing things through the till at 100mile an hour. When I first arrived here I couldn't believe they pack all your bags for you, I always feel awkward standing there with nothing to do! I can wait to get Aldi here, its one of the few things I miss! :-)

[are we there yet?]

Having only been here a week i can't compare the supermarkets here but I do know that I'm a. Aldi convert, I did my whole weeks shopping for my family of 6 and spent an average £80 per week including wine!!! The only thing I couldn't get was dog food, I tended to base meals on what was available, the meat was always good quality as was the fruit and veg, I hope it's the same when they open here, I've been following aldi home cook on FB, great recipes from a lady in QLD,

[barbaitch]

Aldi's very good, I believe. In fact, in England, Lidl and Aldi are going great guns, according to what I've read lately in the UK press (I'm back in England at present for 6 months). Only found out the other day both are run by brothers in opposition to each other. How about that then? Lidl in the UK have won lots of awards recently and I believe Aldi are doing really well, too. So, lucky you, if you have an Aldi in your neck of the woods!

[victoriasquare]

I think you will be very fortunate when Lidl sets up in Australia as well, Coles, Woolies and Foodland will certainly have to lift their acts. I find it strange that Lidl can sell crispy bread rolls for a quarter the price of British supermarket chains, yet they are just as good. Their range of provisions isn't as big, but they are well worth a visit.

 

Aldi is run by two brothers, Theo and Karl Albrecht with their beginnings in Essen in North Rhine-Westphalia. Lidl was set up by the Schwarz company which is based in Neckarsulm in Baden-Württemberg.

 

I've mainly used Edeka in Germany which is the country's largest supermarket chain, and they produced this jolly "concert" made from the sounds of checkout tills. Bear with it.

[chrisda]

This is good news. Not too far for me to travel and we shop at Colonnades anyway. I thought that Woolworths had bought all the land and this was preventing Aldi from building? The master's harddare is right next to Bunnings so that will be good too.

[Tamara (Homes Down Under)]

This is another take on our supermarket "duopoly".

 

It makes some interesting points...

 

Supermarket monsters: How Coles and Woolworths suffocate us

 

 

• FRANK CHUNG
  
• news.com.au
  
• June 16, 2015 3:25PM
  

 

 

 

 

 

 

Are supermarkets profiting at the expense of producers?

 

 

 

 

 

 

 

 

 

 

 

“How much does that cheap product cost?”: Malcolm Knox’s new book lifts the lid on the rise and rise of the supermarket duopoly, and what it means for consumers.

 

 

• Are supermarkets profiting at the expens...
  
• “How much does that cheap product cost?”...
  

 

 

 

SHOPPERS are flocking to Aldi as a “protest vote”, but the discount chain is even worse than the Coles and Woolies duopoly, according to a new book.

 

Each week, every man, woman and child in Australia spends $100 each at Coles or Woolworths outlets. Whether you’re buying groceries, petrol, hardware, booze or pushing money into the pokies, the mega-retailers have come to dominate our way of life.

Australia has the most concentrated supermarket industry of any country in the world. The duopoly threatens the entire retail industry, and their unprecedented power allows them to intimidate farmers, suppliers and employees.

While prices at the check-out might fall in the short term, the cost is shifted: farms become consolidated, choice grows limited and quality falls away.

That’s the bleak picture painted by author Malcolm Knox in his new book, Supermarket Monsters: The Price of Coles and Woolworths’ Dominance, which lifts the lid on the dirty tricks used by the big two in their rise to power.

These range from requiring suppliers to pay “voluntary” marketing kick-ins, to forcing shopping centre operators into “ruinous” terms unless they lock out smaller competitors, through to taking legal action against dead employees.

Statistically, he writes, Coles and Woolworths are almost mirror images. Each company has nearly 1000 supermarkets, nearly 700 petrol stations, more than 1000 bottle shops and hotels — making them the country’s biggest pokie operators — and more than 500 variety and hardware stores.

“It’s impossible not to be affected by them. To live in Australia today, you have to try very hard not to come into the orbit of Coles or Woolworths on a daily basis,” Knox said.

“As a journalist, it seems that this was something that hadn’t really been examined in a holistic or cohesive way. Bits and pieces would come out, but it seemed necessary to bring those pieces together.”

So what should consumers do? Unfortunately, there aren’t a lot of good alternatives. Knox says the growing cynicism towards the duopoly has led to a “protest vote”.

“There has been a major shift in public feeling against Woolworths and Coles, but it lacks coherence. A lot of that is represented in the drift to Aldi, but if you care about suppliers and manufacturers you wouldn’t be choosing Aldi over Coles and Woolies,” he said.

“Aldi do many of the same things to a more effective extreme. It’s like the protest vote in an election, but you don’t realise you’re only aggravating the situation.”

 

 

The Aldi effect

 

 

 

 

 

 

 

 

In the book, Knox expands and updates his eye-opening 2014 essay in The Monthly, which told the story of Marco and Nick Nikitaras, owners of the Hill Street Grocer in New Town, Hobart.

The duo run a family grocer the way it used to be, but are “losing behind the scenes, in the farms and the fields”, as the supermarkets’ exclusive contracts cut down their supply options.

“That particular story seemed to crystallise a lot of the issues: the difficulty of individual operators to compete, the shortcomings from a consumer point of view, lack of brands, poor service,” he said.

“The response is always that it’s a free retail market, that any competitor can come in and meet demands that aren’t met. The Nikitaras brothers were the exception that proved the rule, showing just how hard it is. The things they’re doing in Hobart, difficult as they are, wouldn’t be possible in other parts of Australia.”

 

Author Malcolm Knox explores Australia’s supermarket industry, which is the most concentrated of any country in the world, in his new book.

 

 

 

 

Australians spend on average $100 a week and Coles or Woolies outlets.

 

 

 

 

They throw their legal might around, fighting the smallest case tooth and nail.

 

 

 

One chapter of the book deals with the human impact of how Coles and Woolworths use their massive legal power. Whether it’s pay deals with unions or compensation for former employees or customers, the duopoly fight tooth and nail through the courts against all comers.

“The supermarkets have spent millions in the courts fighting even their longest-*term workers, some of whom had no history of difficulties with their employers,” he writes.

In one example, Woolworths attempted to show an employee was faking an elbow injury by hiring private investigators to follow him and film 77 hours worth of footage, just two of which were produced in court.

Ian Douglas Warfe, an employee of 17 years, eventually won his compensation case. Woolworths spent far more contesting the case than they ultimately had to pay out, Knox notes.

“In exercising its legal rights, Woolworths has seldom followed a policy of keeping prices ‘cheap cheap’,” he writes.

 

 

 

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Knox says there is a “code of silence” among suppliers, many of whom sell only to Coles or Woolworths. “What I would like to see is mechanisms for suppliers to be able to bring illegal behaviour to regulators’ attention,” he said.

Mr Knox said the Australian Competition and Consumer Commission had its work cut out for it in addressing the problems.

“The first problem the ACCC faces is the code of silence where people are bound to secrecy by their own self-interest. Everybody knows they can’t afford to complain,” he said.

He said ideally, the supermarkets would be required by law to sign up to the Australian Food and Grocery Council code of practice — Woolworths and Aldi have signed up, Coles is yet to, and Metcash has said no.

In the past, they could simply exempt themselves from certain provisions whenever it suits them, although changes brought in by Small Business Minister Bruce Billson have tightened up ‘contracting out’ loopholes.

“There [was] clear copyright rip-off of packaging, with private label brands imitating the independents. The code of conduct says they can’t do it, but they were able to sign contracts with individual suppliers waiving those provisions,” Knox said.

“That’s often standard business practice when codes of conduct are voluntary.”

Speaking at the book launch in Canberra on Monday, independent senator Nick Xenophon said Coles and Woolworths had realised it was “probably easier to beat up on their competitors than each other”.

He said he would introduce two piece of legislation in the spring sitting of parliament which would make it easier for smaller operators to bring competition cases against the big two through a public funding facility.

“Supermarket operators tell me they will not take on Coles and Woolworths because it would literally cost them hundreds of millions of dollars,” he said. “This fundamental reform will relate to access to justice.”

Senator Xenophon believes weeding out frivolous cases with a the “public benefit” test would mean the move would not lead to a large cost impost. He argues higher fines would help to cover any increase in costs.

“We need an effects test, we need divestiture powers, and we need access to justice. These are fundamental reforms,” he said.

Coles and Woolworths declined to comment.