The loyalty tax shoppers willingly pay despite push for supermarket competition
The loyalty tax shoppers willingly pay despite push for supermarket competition
The ACCC's supermarket inquiry has shone a spotlight on Coles and Woolworths' high prices. But 76 per cent of shoppers still head to either store for their primary grocery shop.
The ACCC's supermarket inquiry has shone a spotlight on Coles and Woolworths' high prices. But 76 per cent of shoppers still head to either store for their primary grocery shop.
Aldi has again beaten Coles and Woolworths in a government-funded shopping basket comparison.
Consumer advocacy group Choice released the results as part of its quarterly survey, sending mystery shoppers to 104 stores across the country in September.
Here is a breakdown of the costs between Aldi, Coles, Woolies and IGA (without specials) from its most recent report:
- Aldi: $50.63
- Coles: $67.90
- Woolworths: $69.29
- IGA: $77.57
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The argument that consumers are paying a "loyalty tax" in a cost of living crisis is absurd. From the article, this is the only reason:
Aldi stocks about 1,800 products compared to the 25,000 sold by its big competitors.
To say ALDI is a competitor to Colesworth is misleading. It's a supplementary option at best, just like going to a grocer or market is. The range just isn't there.
The range just isn't there.
Apart from a few name brand food items, they generally only stock one type of item. So you don't have 5 different types of alfoil you can buy, but you can still buy alfoil.
Yep, the difference between product range is small while the difference in branded product range is huge.
Most people who shop at ALDI also shop at Coles/Woolies to get the items they can't get at ALDI. It's not a brand thing, it's that they don't sell the type of item you're after at all. As an example, try finding canned mackerel fillets or vegetarian fake meat products at ALDI. They don't stock them.
Aldi don’t stock niche products. You don’t need to buy canned products like that weekly. Their entire business model is less stock, higher turnover and own brand for most things to control the supply chain more.
In a cost of living crisis, you can olan your shop around what’s in store. If you save, what looks like 25% at Aldi, if enough people shop there, it puts pressure on Cole’s and woolies. Personally, I shop in Aldi, and can get most things there, ut if they don’t have something, I pop into another shop. I had the same experience with woolies and Cole’s. Woolies has a wider selection but it’s still not infinite and store dependent. They might have 5 types of things I never buy, but they don’t necessarily have what I need for my recipe.
I love Aldi, but I wouldn't call Cooking Salt a 'niche item'
Lol, no. I'm referring to the canned fish.
I have never gone to aldi and not found a basic, like cooking salt or sugar etc. You might not have a choice of brands.
I've paid more at Woolies and only had brand options I don't like, with the brand I want being sold out.
This is what I do too. I usually only have to go to Coles or Safeway when a recipe calls for something obscure or niche.
The thing is, they are usually dry goods like spices or medical supplements, which can also be bought online.
Safeway and Coles are only there for convenience.
And for most products for most people, that's fine. But for some products, many people will have a genuine preference for the name brand. And it only takes one or two of those before the inconvenience of going to two different shops will lead people to going to Colesworth instead. The same reason people tend not to go to separate grocers, delis, and butchers.
For example, these days my usual breakfast is Vita Brits. I prefer them over Weet-Bix because they are lower in sugar. A quick look at Choice backs me up on this, with neither Weet-Bix nor the Aldi alternative appearing in their low sugar or low salt best-of list. (Though apparently I could switch to the Woolworths homebrand product.)
A while ago, my go-to was Cornflakes. Health was less of a concern there than texture and taste. And I did try the Aldi product once, and it was frankly terrible.
For other people it might be a children's snack/lolly. Or a particular washing powder/liquid/tablet. Or a particular variety of a particular fruit. But people are time poor, and a lot of people won't go to two places if they can get everything they need from one place.
Another way to look at it is people don't have the energy to go to both stores.