Supermarket giants fail in cost-of-living stakes
The biggest grocery savings revealed as the Federal Government cracks down on the big chains.
Spare a thought for the public relations departments at the big supermarket chains. Their task is to find some way to respond as consumer groups and government take a big stick to their employers.
As household budgets continue to be squeezed and prices skyrocket, supermarkets have been subject to numerous reviews over alleged price gouging and mistreatment of suppliers.
One review, conducted by former Labor Minister Dr Craig Emerson has now been finalised, with the Federal Government adopting all of Dr Emerson's recommendations pertaining to suppliers, including a mandatory code of conduct.
That means the conduct of supermarkets with annual revenue of $5 billion will be policed. Currently, that covers Coles, Woolworths, Aldi, and wholesaler Metcash, which operates the IGA and Foodland brands.
Under the code, supermarkets will be required to deal with suppliers “in good faith”. They will also be prevented from “retribution” against suppliers who complain about their conduct.
The penalty under the mandatory code has been set at three times any benefit the supermarkets derive from their misconduct, or up to $10 million, or 10% of their annual turnover, if that benefit can’t be determined.
The government has also asked the Australian Competition and Consumer Commission (ACCC) to look into customer prices, but its final report is months away.
In its latest quarterly government-funded report on supermarket pricing, consumer group CHOICE listed the supermarket with the cheapest products. And it’s not Woolworths or Coles.
CHOICE sent mystery shoppers to 81 regional and metropolitan supermarkets across the country to record prices for 14 common grocery items.
The research found Aldi was the clear leader on value for money, with the 14 products costing just $51.51, about 25% cheaper than Coles or Woolworths.
Coles and Woolworths prices were found to be very closely matched, with only 75 cents separating them, excluding specials.
Coles was the most expensive at $69.33, while the basket at Woolworths came in at $68.58.
Where you live can also affect the prices you pay. If you live in Tasmania or the Northern Territory, where Aldi does not operate, you’re paying significantly more each week for your groceries.
Outside of the Northern Territory and Tasmania, Western Australians are paying the most on average for their groceries – around a dollar more for the basket of 14 items than people in other parts of the country pay.
You can read more about the CHOICE study here.
