Aldi eats up the competition on grocery prices

AND the crown for Australia’s cheapest groceries goes to … Aldi.

The bargain basement chain has again won the food fight, with MoneysaverHQ finding prices were the lowest there for eight of 12 basic grocery items.

But it’s a case of buyer beware – prices can vary between the chain’s stores.

A survey conducted in April compared the lowest prices across Aldi, Woolworths and Coles for: a litre of milk, a dozen free range eggs, top quality mince, free range chicken breasts, bread, broccoli, bananas, capsicums, tomatoes, packets of rice and spaghetti, and a block of cheese.

A loaf of white bread cost the same at all three supermarkets, while Aldi tied with Woolworths on the price of rice. All three had the same price for spaghetti, and Woolworths had the best priced premium mince.

The poll backs those conducted by consumer advocacy group Choice, which found Aldi offered the best value grocery baskets in 2015 and 2017.

Choice spokeswoman Rachel Clemons said Aldi was able to offer lower prices as it cut down on overheads, including no bag packing, minimal customer service and items in boxes on shelves.

“Even when Woolies and Coles have price promotions, Aldi is generally 9 per cent cheaper,” she said. “But because it doesn’t have the breadth of range, a lot of people talk about doing basic shop at Aldi, and topping up at other supermarkets or shops.”

Tips for racking up savings include comparing the unit price of items, buying generic brands, purchasing in-season and Australian-grown fruit and vegetables, and checking the cost of packaged versus loose produce.

Ms Clemons said the cost of the same product could also vary in different sections, such as almonds in the baking aisle, snack aisle and the fresh produce sections.

Katie Lavercombe, a blogger at Mums of Brisbane, manages to spend just $100 a week on groceries for a family of six, before factoring in cleaning products.

She said planning was crucial in reining in grocery budgets and recommended writing meal plans, researching specials, making meals from scratch and sticking to a shopping list.

“It’s hard work to keep it low and you can’t shop ad hoc,” Ms Lavercombe said. “I do the main shop at Aldi, look at the fruit and vegetable store to see what the prices are, and buy ingredients that I can use in multiple meals. For example, I can use a zucchini in spaghetti bolognaise, stir fries, quiche, burger patties … it’s very versatile.

“You can do it if you are disciplined – dinner doesn’t have to be MasterChef-worthy every night.”

Melbourne mum Kim O’Hanlon estimates about $150 in savings a month using the Woolworths rewards program and credit card, and planning weekly shops around specials.

“If you do online shopping with click and collect it also gives you time to see the specials, compare prices and plan your shop,” she said.