A new leader in the supermarket price war 78



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Are you going shopping today? If you’re on a tight budget, you’ll might want to think about where you shop to get the most bang for your buck.

After trailing for a number of years, it seems Woolworths may have finally taken the lead in its ongoing battle with Coles to be known as the supermarket with the lowest prices.

An analyst for wealth management company Morgan Stanley has emailed clients with the details of his analysis of the two supermarket giants and declared Woolies the winner.

According to Fairfax, analyst Tom Kierath compared the cost of a trolley containing 36 grocery items from Coles and Woolworths, plus Costco.

While the American bulk-buy warehouse came in lowest overall,  Woolworths beat Coles in the “cheap-cheap” stakes.

Woolies was 29 per cent more expensive than Costco, an improvement on an earlier study in which it was 37 per cent more expensive to shop at Woolworths than Costco.

The $60 joining fee for Costco was not included in the analysis.

Woolworths had lower prices than Coles on 20 products, was more expensive on 13 items and had identical prices on three, according to Mr Kierath’s study.

Woolworths has reportedly spent $200 million reducing the cost of is groceries in order to defeat Coles in the price war.

A Coles spokesman dismissed the survey, saying it was drawn from a small number of items, and that food and liquor prices at Coles had fallen 1.5 per cent a year over the past five years at a time when while overall food prices had risen by an average of 1.5 per cent each year.

Discount German supermarket Aldi was not included in the study, presumably because of the inability to compare “like with like”, as Aldi develops its own products.

Tell us, does price matter for you? What makes you choose one supermarket over another? Will this new analysis make you think differently about where you shop?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Regardless of budget I can buy the brands I want at Super IGA. Woolworths and Coles have deleted many of the brands I like so why would I give them my money for staples?

    2 REPLY
    • You really only have the choice of what is on their shelves at Coles and Woolies. I have really noticed a decline of brands in these two shops.

  2. If Costco came in cheaper as he said how did woollies win?

    2 REPLY
    • I do , you get it back in your first shop. You get cheap groceries and quality and cheaper fuel. 22 cents a roll of toilet paper among other things good on you Costco , my husband and I save money

  3. Agree with earlier comment, fresh fruit, veggies and LOCAL dairy at our local fruit and veggie shop, chicken and meat at local butcher and chicken shop and bread at local bakery…. Only other necessary items at supermarket.

  4. We shop at Ald often. Then fill ins at IGA or Coles – used to be Woollies but Coles redid their store and it is set out better. But we go to farmers markets for our vegies and/or grow our own. I just have a thing about doing shopping at the big two – just too big. I prefer money to stay locally.

  5. prefer Food works quality over both of them any day , especially their deli good and fresh produce , so much better and fresher .

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