Could groceries get cheaper in coming years? 138



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We live in a world where thanks to inflation, the government and general economic growth, prices just keep increasing. But recent news has us wondering, will our groceries actually get cheaper over the next few years?

According to the Sydney Morning Herald, discount retailer Aldi has publicly committed to keeping prices low after placing increasing pressure on rivals, Woolworths and Coles. Aldi’s sales reached $6 billion in 2014 compared with $5.3 billion in 2013 – huge growth. This is compared to Woolworths who experienced only 4.7% growth and Coles who experienced 4.6% growth (across food and liquor) for the same period.

This strong growth of Aldi is likely to place enough pressure on the major two brands that at some point – if they begin to lose their strong market share, they may actually reduce their prices in order to compete.  UBS expects Aldi’s sales to reach $9.3 billion in five years and says revenue could hit $13 billion, challenging Coles’ and Woolworths’ stranglehold over the grocery sector, if it fixes issues such as checkout queues.

Aldi Group Managing Director, Tom Daunt has said, “At the core of our business model is the need to offer the highest-quality product at the lowest price. It’s a very dangerous territory to get into for a discounter to allow others to encroach on that area and that’s certainly not part of our plan.

“We will always select the lowest price we’re able to afford to sell the product at, which is very different to the standard retail convention, which is to price products at the highest you’re able to get away with.”


It is promising that by supporting Aldi – and enjoying our groceries for much less – we could find ourselves pushing the prices down and making life a lot easier for ourselves in the next few years.

So tell us today… Where do you shop? Would you like to see Woolworths and Coles reduce their mark up margins and bring prices down closer to cost price? Share your thoughts in the comments below… 

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  1. That may work for stores in big cities, but it won’t help us in the small towns and rural areas.
    We pay so much more for all our groceries for one simple reason; because there is NO competition.ĺ

    3 REPLY
    • I agree Ruth. The town I live in (north coast NSW) has a Woolworths and an IGA but the prices at both of them are higher than at the larger town 50km away. I would love an Aldi here.

    • We moved from a small town in Central west NSW to the Blue Mts and can’t get over the wonderful quality of fruit n veg we can get here for a much cheaper cost , than we could in the country. There was an Aldi 30 mins drive from us so we did have that as an option but the fresh produce was shocking ( not at Aldi, that was the same as Aldi everywhere)!!! Over priced and terrible quality!!!!

    • The country always has wonderful fruit and vegies..I love the farmers road side stands and cannot resist stopping and buying.

  2. On our trip around Australia, we noticed that small towns with one supermarket were expensive. I understand that transport makes things expensive. Maybe with fuel costing a little less (just maybe), things might improve. I am thrilled that Aldi is finally coming to our town in the near future as their presence does keep the big two on their toes.

    8 REPLY
    • Fuel prices have not come down in country areas. We are still paying $1:49 ltr.
      They charge more in country towns because they have no competition and the customer has no choice other than to buy from their stores. My choices are to pay the higher prices here or to take a 120klm round trip to get a better deal. As we have no public transport, that means around 10 ltrs of fuel at $1:49 ltr plus wear and tear on the car.

    • I live in regional nsw petrol prices are $1.17 litre and I work in a supermarket and I can tell you Ruth that prices are the same state wide in our sto

    • When I lived near lake Cargelligo I made a monthly trip to Griffith to do my shopping and bought everything in bulk. Used a big deep freezer as well. I still buy in bulk as it saves n the long run.

    • I live in regional N.S.W and I buy buy meat in bulk amounts, It is much cheaper, I recently spent $200 on meat, I got lamb loin chops, rump steak, pork loin chops and crumbed lamb cutlets, enough to do me for 3 months. In the mean time I will put the money away to restock when it runs out. It is a far cheaper way of buying

    • Started to shop at Aldi I think most of it is cheaper however still pop to woollies for the odd thing that I like!! In the Aldi I go to if I go at 8 fruit and veg great, free range/organic meat too. Hard to change the habits of a lifetime but am trying!!!! Really notice the savings.

  3. I am heartilly sick of the way Coles/Woolies keep dropping lines, usually more expensive ones that they also make using their ‘home brand’ but which is nowhere near as good as the branded variety! I think they would still get a better return if they bought some of the branded items back – or maybe I will start shopping a IGA ……

    2 REPLY
  4. shop at local foodland. if they are pricing too cheap what are the farmers or manufacturers getting? This could actually increase prices & fewer access to goods as it would be unviable to produce.

  5. Maybe, but I understand Aldi is a supporter of Halal – I’d rather pay a little more, go without a little more and support all Australian goods and companies.

    10 REPLY
    • I don’t really get where you are coming from. Being a supporter of Halal doesn’t mean one can’t support other Australian companies. Are you ignorant or racist, or both? Do you actually know what Halal means?

    • There is something I want to ask about this Halal food and I am not being smart, I want to know the answer..If as I have read in here that the money goes to fund terrorist groups, why is ASIO and The Government not stopping it? I don’t buy it because I read so many negative comments in here I thought gee well I had better not but if possible I would like an answer

    • We don’t know where halal extortion money goes too. I for one do not support it and June, how dare you mention the word racist, obviously you are the one that’s ignorant.
      Despising or not buying halal does not make one racist. It is nothing more than a religious scam, and a indirect tax on our food..
      We have EVERY right NOT to buy halal.

    • Do not be so naive. The government does not stop things that are illegal just because they are alleged to be so. Islamic extremists never tell the truth. Moslems do not have to have their food specially “blessed” at all. They can say a one-word blessing over anything they buy, just as any other religious group does. Even if the funds from the halal
      extortion racket do not end up funding terrorism, they certainly end up in moslem-only charities & that is wrong!

    • funding a charity is a bit different from funding a terrorist group and if terrorists groups were being funded ..don’t kid yourself..Australia is on a high terrorist alert it would be stopped

    • June I believe it was unnecessary to name call and if Anne chooses to buy Australian and not support Islam that is her perogative

    • Whoa now, that stirred ’em up, didn’t it?? No, June, I’m not racist and yes, June I do know what Halal stands for. I still claim the right to buy my goods without supporting someone else’s religious beliefs, if you like, and I am aware of how many smaller
      Australian companies have had to close because they choose NOT to support that system- if you dig deep enough I guess you can find some sort of bigotry involved – lighten up, this isn’t an arena, just social comment. I donate to my own religion if and when I feel like it.

  6. I worked at IGA for five yrs, They definitely have the best choice of brands out of the big three. They also have great specials, but couldn’t afford to do a full shop there.

  7. I am all for cheaper groceries, especially living in Perth where we pay more for the same products compared to the East coast. However, one factor also has to be kept in mind and that is that this does not mean loss of employment for Australians.

  8. At what cost to the farmer producer etc. Not sure about Aldi but big multi nationals like Walmart. Strangle there suppliers. I’m sure Coles ww do same.

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