New research has revealed a significant price gap on a typical Christmas shopping basket, with Aldi emerging as the clear winner for cost-conscious consumers. The findings come as major supermarkets face the threat of multi-million pound fines under new rules designed to crack down on excessive pricing.
The Cost of Christmas: A Stark Price Divide
The latest quarterly price survey by the consumer advocacy group Choice has pinpointed Aldi as the most affordable supermarket in the lead-up to the festive season. The study, which compared the cost of a basket of 20 common grocery items, found Aldi's total came to $72.41.
This was substantially cheaper than its main competitors. Woolworths was ranked second-cheapest at $98.98, followed closely by Coles at $100.04. IGA was the most expensive of the supermarkets surveyed, with the same basket costing shoppers $109.25.
The basket included seven staple items like milk, bread, and apples, alongside 13 popular products for holiday entertaining, such as crackers, hummus, camembert cheese, and party pies.
Specials Make Little Difference to Overall Ranking
Notably, the ranking of supermarkets remained unchanged even when promotional specials were taken into account. Aldi's price stayed exactly the same at $72.41, as it did not have specials on the selected items during the survey period.
"When including specials, Aldi was still the cheapest," confirmed Mark Serrels, Choice’s editorial director. "The Woolworths basket with specials was $93.17, while at Coles it was $100.04, and $105.38 at IGA."
The survey results are based on data collected from 104 supermarkets across 27 locations during September 2024. Choice has been conducting and releasing these quarterly surveys since June 2024, funded by the federal government to improve price transparency for Australian consumers.
Supermarkets on Notice Over Price Gouging Crackdown
The price survey arrives as supermarkets are put on formal notice regarding price gouging practices. From next July, large retailers will be banned from charging prices deemed excessive when compared to their cost of supply.
The penalties for breaches are severe, with fines of up to $10 million per incident or 10% of the company’s annual turnover applying. This legislative move has been strongly opposed by retail industry bodies, including the Australian Retailers Association and the National Retail Association.
The crackdown follows an Australian Competition and Consumer Commission (ACCC) inquiry in March, which found the powerful near-duopoly of Coles and Woolworths provided them with little incentive to compete vigorously on price. The inquiry concluded they were among the most profitable supermarkets globally.
For British readers observing the Australian market, these developments highlight intense global scrutiny on grocery pricing and the regulatory tools being deployed to protect consumers, especially during a cost-of-living crisis.
