According to a recent survey conducted by The Guardian, major supermarkets are not the most cost-effective option when it comes to purchasing essential fruits and vegetables. The survey, which involved 61 different retailers, demonstrated that independent and Asian grocers consistently offered lower prices than popular supermarket chains such as Woolworths and Coles. The findings of the survey have been described as “damning” by an industry insider.
To obtain these results, a team of ten Guardian reporters visited local independent and Asian grocers, as well as major supermarkets, over a two-day period in July. They recorded the prices of various fruits and vegetables, including apples, bok choy, eggplants, pears, potatoes, sweet potatoes, and zucchinis, in stores located in Sydney, Melbourne, Townsville, and Kyneton.
Contrary to popular belief, the survey unveiled that independent and Asian grocers consistently offered more affordable options compared to major supermarkets. Don Linke, manager of several fresh food markets in Melbourne, went as far as calling it a “myth” that Coles and Woolworths were the cheapest choices for consumers. He labeled the results of the survey as a “damning indictment” of the practices of these supermarket giants during a time when the cost of living is a significant concern.
The data also included an analysis of Harris Farm’s “imperfects” range, which was found to be notably cheaper than the offerings in major supermarkets. While prices at independent and Asian grocers varied across different stores, with some offering certain produce cheaper than the major chains and others being more expensive, the survey consistently revealed that the major supermarkets almost never had the cheapest prices. The major supermarket category in the survey included Coles, Woolworths, Aldi, and Harris Farm’s regular produce.
Don Linke argues that aesthetic standards play a role in driving up prices and contributing to excessive food waste. Linke mentions that these standards create upward pressure on prices and lead to an unnecessary amount of discarded food. He emphasizes that the focus on visual aesthetics sacrifices valuable food resources for no substantial reason.
The survey also considered the imperfect produce range offered by major supermarkets such as Coles and Woolworths. However, this range was not included in the trial due to limitations in the range’s availability and quantity, often only being sold in bulk or having a limited selection. The survey exclusively focused on loose produce priced per kilo or per bunch to ensure a fair and consistent comparison between stores.
Ian Jarratt, a spokesperson for the Queensland Consumers Association, expressed that the survey results are not surprising and advised consumers against making assumptions about the cheapest options available. He encouraged consumers to be proactive and actively compare prices to find the best value. Jarratt believes that having a competitive market with multiple players is beneficial for consumers and promotes efficiency.
In response to the survey, a spokesperson for Coles stated that the supermarket regularly offers specials and is continually exploring ways to reduce prices. They acknowledged that suppliers often request price increases due to factors such as inflation and rising costs of production. Similarly, a spokesperson for Woolworths mentioned that the retail prices of their fruit and vegetables are influenced by the prices they pay their growers. They emphasized that they strive to balance competitive value for customers with fair prices for farmers.
Earlier this year, a financial analysis conducted by The Guardian demonstrated consistent increases in food profit margins for Coles and Woolworths throughout the pandemic and the cost-of-living crisis. This suggests that major supermarkets may have taken advantage of their market dominance to raise prices unnecessarily, as noted by former Australian Competition and Consumer Commission head, Rod Sims.
Overall, the survey’s results highlight the importance of considering alternative options to major supermarkets when it comes to purchasing fruits and vegetables. Consumers are encouraged to actively compare prices and explore different retailers to ensure they are getting the best value for their money.
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