Discount Variety Retail Chain Big Dollar reached already two years after opening its stores in Denmark a profit of millions DKK. With the slogan 'mighty fine prices - every day', Danes have been able to buy all kinds of cheap products in the discount chain Big Dollar for about two years and Big Dollar has proven to be big business. After only two years of activities in Denmark, the chain has already generated a solid profit of DKK 4 million in the 2023/2024 financial year. The year before, which was the first year with store openings and actual activities, ended in a deficit of DKK 914,000. In the year of incorporation in 2021, there were only a few expenses for salaries and no turnover yet. Therefore, the short financial year ended with a small deficit of a modest DKK 4,000. Although the slogan, concept and name might sound American, the chain is actually Swedish. Ahlberg Dollarstore opened its first Swedish stores in 1999 and sells for billions in their more than 100 Swedish stores. On the other side of the Øresund, the chain goes by the name Dollarstore, but that name had already been taken in Denmark when the Danish expansion started three years ago. That is why the billion-dollar chain in Denmark goes by the name Big Dollar. The discount chain sells everything from garden equipment, home interiors and groceries to cosmetic products and personal care. The range consists primarily of own imports from Asia or purchases through a number of European wholesalers, which keeps prices down. The Danish branch currently has five stores in Næstved, Brønderslev, Hjørring, Holbæk and Frederikshavn, respectively. In addition, you can buy the products through a webshop. The stores are at least 3,000 square meters and are located near access roads in shopping areas with DIY stores, outlet stores and chains such as Biltema, Jysk, Elgiganten and T. Hansen. Last year, Dollarstore told Finans that it "can easily fit 50 stores in Denmark" within a period of three to five years. Read more: New discount chain in Denmark brings home first million profit ( jyllands-posten.dk ) #smartdiscount #denmark #dollarstore #bigdollar #profit #drc #discount #retail #discountretail #discountretailconsulting #retailconsulting #google

Six in ten Spanish shoppers (60%) say that they are purchasing more own private-label products in a bid to save money, a new study by retailer Dia has found. In addition, half of respondents to the ' Tu Bolsillo al Dia' study said that the saving achieved from shopping for private labels is between 10% and 25% of their monthly shopping bill. The annual study found that Spanish shoppers this year are chiefly concerned with saving money where possible, which has led to an increase in the number of consumers comparing prices, seeking out promotions, and planning weekly spend in advance. At the same time, the study also found that shoppers are putting increased focus on the need to maintain a healthy lifestyle, with a third of respondents saying they would be willing to pay more for better quality, healthier items. In terms of weekly spend, 45% of respondents said that they spend between €50 and €100 per week on shopping, while 42% spend between €25 and €50. Influencing Factors Seven in ten shoppers cite price as the most important aspect influencing their choice of where to shop, followed by proximity (cited by 60%), the offers, discounts and promotions available (48%), customer service (35.7%) and loyalty programmes (27.2%). The physical store remains the predominant purchasing channel for more than half of customers (53%), with respondents citing the availability of a greater range of savings as a key influencing factor. Customer Preferences “The conclusions drawn from this report once again show the changes that our customers' preferences have undergone in recent years, as well as the importance of identifying them in order to respond quickly to their demands in a timely manner," commented Inés Vilchez, director of operations and supply chain at DIA España. "As part of our commitment to be 'by the side' of Spanish families regardless of the economic situation they face, Dia strives to adapt to the specific needs of its customers and, in the last year, has reinforced its commitment to own-brand products, with more than 2,400 renewed SKUs, as well as investing €150 million euros in promotions during 2024." Read more: Private Label Purchasing On The Rise In Spain, Says Dia | ESM Magazine #smartdiscount #privatelabel #ownbrand #spain #dia #growth #expansion #development #marketdevelopment #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi Belgium is testing the introduction of a loyalty card. This is the first time that the discounter has launched a loyalty programme. The first of the test is for Belgium. Aldi customers in 70 stores in West Flanders and the north of Hainaut will be able to test the digital loyalty card for the first time this week. This is an update to Aldi's existing app, which allows customers to save points when making a purchase. Those points can then be redeemed for free products or a discount coupon. Almost all supermarkets have this form of loyalty program, intended to bind customers. For Aldi Nord, which includes the Belgian stores - this is a first. Belgium is the test country. The results will be evaluated, according to the retailer. Read more: Aldi tests loyalty card: first for 70 stores in Belgium | Gazet van Antwerpen ( gva.be ) #smartdiscount #aldi #belgium #loyaltycard #app #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain ALDI's own private label brands meet the highest quality standards and repeatedly impress in direct comparison with other brand products. In the current survey by YouGov and Handelsblatt, ALDI was named number one in terms of price-performance ratio in food retail for the fourth time. This is also proven by independent quality tests carried out every month by Stiftung Warentest and ÖKO-TEST. Special criteria and overall quality are assessed. "Good for everyone" also means good own brands for everyone: ALDI own brands were also rated ÖKO-TEST tested 12 nectarines. The nectarines of ALDI's own brand NATUR LIEBLINGE received the grade "very good" and were chosen as the test winner. The nectarines convinced not only with the price, but also with taste and naturalness. "At just 1.99 euros per 1-kilogram pack, ALDI SOUTH proves that good and fresh nectarines don't have to be expensive in summer. With the test result, ALDI SOUTH was able to leave many other supermarkets and discounters such as Lidl and Kaufland far behind." Read more: Fruchtportal.de - Nachrichten zum Thema Fruchthandel, Obst und Gemuese für die Fruchtbranche #smartdiscount #aldi #fruit #vegetable #privatelabel #ownbrands #nectarines #winner #germany #environmental #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain LIDL's chairman of the board Kenneth McGrath has now completed the restructuring of the board structure. From 1 July 2024, there will be a new board department with changed responsibilities and also new faces. The goal is obviously to make responsibilities clearer and more structured in order to be able to act even faster and more effectively in the future. Already in the last few months and last year, some managers have already left more or less voluntarily, so that currently no one has had to leave their post. The last to leave was the Chief Human Resources Officer Mr. Andre' Becker in May of this year. There is also a lot going on abroad. In the course of the restructuring, four country heads will move to the headquarters in Neckarsulm, where they will work as divisional board members. This concerns Jeno' Grosz, Lidl Hungary, Matus' Gala, Lidl Belgium, Alessandro Wolf, Lidl Austria and Marco Giudici, Lidl Romania. As a result, these four successful national companies will receive new CEOs. The structure abroad is now also to be streamlined in order to achieve the goals better and with more speed. New board member comes from BMW The newly created "Customer" department will now be taken over by former BMW manager Jens Thiemer. All areas of marketing and sales that lie at the interface with the customer are now bundled here. Originally, it had been announced that Thiemer would take over the new board department for customers as early as January 1. The change had obviously already approved this last November, but had been postponed somewhat by the creation of the new department. Thiemer had previously headed the Customer, Brand and Digital divisions at BMW and is now to strengthen LIDL more, especially in these areas. In addition to Christian Härtnagel, Peter de Roos is also one of the divisional board members at Thiemer. LIDL's priority here is to be even closer to its customers and to develop more from a conventional brand to a relationship brand. Thiemer is also responsible for the presentation of the product ranges and the layout of the stores. The Schwarz service, which provides the central services for LIDL, Kaufland and Co., will also be leaner. Managing Director Holger Krieger for Accounting is leaving the company by mutual agreement. His successor is now Antonio Rupcic, who reports directly to the responsible board member Christiane Milders. In the future, LIDL purchasing will concentrate on the core functions Due to the new creation of the "Customer" department with a major restructuring of the structures in other departments as well, everything took a little longer than planned last year. For example, board member Christoph Pohl, who continues to head purchasing, had to hand over areas such as marketing and market research to Thiemer. Jörg Siegel, who was previously responsible for the group's procurement as a divisional board member, and Gregor Schwarz as Managing Director of Schwarz Mobility Solutions, who was responsible for the purchase of company cars, were also replaced. In the future, responsibility for the states will be combined in one instead of two board departments. The management of this important area will be in the hands of board member Georg Kröll from 1 July. Maksymilian Braniecki, who was previously responsible for some of the countries on the Executive Board, will take over as Head of Human Resources from September in order to be able to react better in view of the increasing shortage of skilled workers. The logistics department, which is headed by the former Lidl Germany boss Matthias Oppitz, will also be upgraded. There, the online and branch business are to be more closely networked along the entire supply chain. The restructuring of the board of directors is now intended to lead to a further increase in efficiency at LIDL in order to be able to identify trends more quickly in order to make decisions more effectively. The fact is that LIDL is constantly putting itself to the test and is thus constantly developing. Read more: LIDL mit Neuordnung im Vorstand. - Supermarkt Inside ( supermarkt-inside.de ) #smartdiscount #lidl #germany #change #boardofdirectors #procurement #marketing #customer #bod #restructering #reorganisation #lean #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi UK has signed a new £750 million deal the family-owned Kent-based fruit farm AC Goatham & Son. The Fruit farm has supplied Britain’s fourth largest supermarket with a variety of apples and pears since 2016 and was announced earlier last year as Aldi’s sole supplier of British apples. The new 20-year deal will also see the introduction of the “Aldi Orchard” , a 200-acre plot on New Green Farm in Gravesend, which will grow a mix of Gala and Braeburn apples for Aldi stores across the country. This long-term deal will provide vital support for British farmers, assuring them of supply and helping to give them the security they need to grow and thrive. The news comes as British Apples and Pears Limited (BAPL) named Aldi as 2023 Apple Retailer of the Year and the Fresh Produce Consortium (FPC) awarded Aldi Fresh Produce Retailer of the Year 2023. AC Goatham & Son, named Supermarket Fruit and Veg Supplier of the Year at the FPC Awards 2023, also has plans to plant an additional 100 acres per year of apple trees exclusively for Aldi. Founded in 1947, and run by Clive Goatham and his son Ross, the business supplies an estimated 250 million apples and pears to Aldi stores each year, more than five times the volume it initially supplied to the supermarket in 2016. The business has big plans for its future, including working with Aldi to extend the growing season with controlled atmosphere storage and working in partnership with the supermarket on its journey to Net Zero. Ross Goatham, Managing Director of AC Goatham & Son, said: “This is a fantastic achievement and a real testament to the work both AC Goatham & Son and Aldi have put into the agreement to have created something truly collaborative, a first for the British Top Fruit Sector. “This gives us the confidence now to invest for the future and to grow more British apples and pears for Aldi, guaranteeing sustainability, viability and most importantly UK food security.” Julie Ashfield, Managing Director of Buying at Aldi UK, said: “We are proud to be one of the largest buyers of British apples and of our partnership with AC Goatham & Son. “This new 20-year deal represents a £750m investment in British farming and demonstrates our long-term commitment to championing British produce.” Aldi was the largest buyer of British apples in 2023 according to the industry body, British Apples & Pears Limited (BAPL) and are poised to repeat this feat in 2024. Read more: ALDI INVESTS £750M WITH BRITISH APPLE GROWER - ALDI UK Press Office ( aldipresscentre.co.uk ) #smartdiscount #aldi #uk #apple #farm #deal #agreement #drc #discount #retail #consulting #discountretail #discountretailconsulting #google

Discount Retail Chains ALDI South and ALDI North excluding Trader Joe's increased their combined global sales by 8.7% to 112 billion euros in 2023, setting a new sales record. According to a company spokesperson, ALDI North achieved total sales of 29 billion euros, an increase of around 7.5 percent (2022: 27 billion euros). ALDI Süd even posted sales of 83 billion euros (2022: 76 billion euros). Even though both regions are legally independent companies, they are usually seen as one company by the public, also due to their close business connections. ALDI Nord's gross sales in Germany are expected to have risen by 6.6 % to around 15 billion euros in 2023. ALDI Süd also reports a very good sales development and was able to gain further market share. ALDI now operates a total of around 12,000 stores worldwide. This is to be steadily expanded, in the USA alone up with another 800 new stores are planned at the end of 2028. To this end, about 9 billion dollars (8.22 billion euros) are to be invested in expansion over the next few years.  Strong international business due to numerous new openings ALDI recorded the largest growth abroad in the last financial year. ALDI Süd in particular has recently been able to open numerous new locations in the USA and Great Britain. Last summer, ALDI Süd was able to take over all 397 supermarkets of Winn-Dixie and Harveys Supermarket in Alabama, Florida, Georgia, Louisiana and Mississippi from parent company Southeastern Grocers. Here, some of the stores have been converted into ALDI discounters, while others continue to operate as Winn Dixie and Harveys supermarket stores. In the UK, too, the signs are pointing to expansion. The mark of 50,000 employees in Great Britain is to be cracked before the end of the year. So far, ALDI UK has around 45,000 employees. The Discounter operates more than 1,000 stores in the UK and plans to open around 500 new stores here as well. According to its own information, it is investing about 1.4 billion pounds in expansion in Great Britain last year and this year. ALDI works with around 5,000 suppliers throughout the UK and has been named the best discounter for fair and trusting business relationships in the annual GSCOP survey (Groceries Supply Code of Practice) for ten years. LIDL also on course for growth in the UK Discount competitor LIDL also published new figures a few weeks ago. According to the company, revenues at the Schwarz subsidiary rose by 9.4% to 125.5 billion euros in the past fiscal year 2023/24. Retail experts also see one reason for the strong growth of discounters in changed consumer habits in view of increased inflation. The strong expansion in the USA is putting pressure on LIDL, which currently has only 175 stores in the USA since 2017. Things are already looking better in Great Britain and, according to data from the market research institute Kantar, LIDL is even the sixth largest retailer in the country with a market share of 7.5% with more than 960 stores. Read more: ALDI mit weltweiten Rekordumsatz von 112 Milliarden € - Supermarkt Inside ( supermarkt-inside.de ) #smartdiscount #aldi #lidl #usa #uk #globalsales #revenue #growth #expansion #drc #discount #retail #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi and Grocery Outlet Bargain Market are clobbering the competition in terms of foot traffic, and it’s not all due to the two chains’ expansion, according to a recent blog post by Placer.ai. The chains, which are known for carrying fewer products than their competitors, have kept prices low through extensive use of private-label brands and fewer in-store amenities. The strategy appears to be working, according to Placer.ai, which shows that while visits in the overall grocery segment grew 7.9% year over year in May, foot traffic at Aldi and Grocery Outlet Bargain Market was up 26.3% and 14.3%, respectively. “Some of this foot traffic growth can be attributed to the two chains’ continued expansion: Aldi added dozens of new stores in 2023 with hundreds more in the pipeline and Grocery Outlet Bargain Market also significantly grew its footprint. But the average number of visits to both brands’ individual locations also increased, again outpacing traditional grocery, showing that their expansion is meeting robust demand,” the Placer.ai blog post noted. The two chains also showed growth in loyalty rates shoppers who made trips to the stores at least four times in a month over the last three years. Nearly a third of shoppers at both chains fell into this category in 2024. In 2024, 30.1% of Aldi shoppers and 30.2% of Grocery Outlet Bargain Market shoppers were classified as loyalty customers. That’s up from 28% and 27%, respectively, as of April 2022, according to Placer.ai. “Increasingly, it seems, people are doing at least part of their routine weekly grocery shopping at these limited-assortment chains. And with consumers continuing to seek ways to save money, these grocers are well-positioned to continue growing their visit shares,” the blog post noted. Read more: Aldi and Grocery Outlet Bargain Market are growing loyalty shoppers (supermarketnews.com) #smartdiscount #aldi #usa #placer.ai #groceryoutlet #bargainmarket #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #loyalty #google

Discount Retail Chain Aldi USA is having a big year as it moves forward with its rapid expansion plans to open hundreds of new U.S. locations over the next five years. That could be trickier for the small-format discount chain than the average company, due to its efforts in environmental sustainability initiatives. Aldi plans to increase its footprint by 30%, the grocer now operates 2,372 U.S. locations according to ScrapeHero, by 2028, adding an estimated 800 locations, and as it expands the company is urging its private-label suppliers to remain focused on sustainability. Aldi made headlines in early May with its first-ever supplier summit, where it encouraged suppliers to keep innovating with speed and double down on reducing waste. As the company grows, so does its environmental impact. “By some estimates, the global food system now accounts for nearly one third of greenhouse gas emissions,” Aldi USA CEO Jason Hart said during the summit. “We strongly believe we all have a part to play, and playing that part is something our shoppers expect. That’s why we want to work together to reduce emissions and waste throughout our entire supply chain and product lifecycle.” Green packaging Supermarket News caught up with Emily Wiora, Aldi’s director of sustainability, who said in an email interview that working with suppliers, in part, means making small changes to products. For example, Aldi cut nearly 50 tons of plastic from circulation annually just by removing the plastic windows in packaging that enable shoppers to see inside of its private-label brand pasta and that’s just one product. “In addition to eliminating the clear plastic windows from our pasta boxes … our suppliers also helped us streamline the design of our Aldi-exclusive vinegar bottle to use 33% less plastic, and our Fudge Marshmallow Cookie tray design to use 20% less plastic,” Wiora explained. “We are always eager to partner with our supplier base to identify new improvements in packaging innovation.” In 2022, the discounter enshrined its sustainability goals with suppliers through the release of its Aldi International Recyclability Guidelines, a 95-page document that establishes parameters for a broad range of sustainability goals, such as biodegradable plastics, compostable materials, and more. Aldi now reports that 75% of its private-label products, which constitutes roughly 90% of its inventory, is reusable, recyclable, or compostable. The grocer also includes How2Recycle logos on its packaging that explains how shoppers can best recycle packaging. “We know we are one piece of the packaging value chain, and we work across the industry to accelerate progress on key packaging challenges,” Wiora said in an email. “For example, in August 2020, Aldi U.S. became a founding activator of the U.S. Plastics Pact, where together we’re working to create a path towards a circular economy, and we are also a part of the Sustainable Packaging Coalition. We believe collaborative platforms of this nature are critical to move our industry forward.” Beyond plastic While packaging waste remains one of the biggest impacts grocery stores have on the environment, pollution from carbon dioxide emissions is another major issue for the industry. At the supplier summit, Joan Kavanaugh, vice president of national buying at Aldi USA, said the company’s ambition to become the most sustainable grocer in the nation also means focusing on emissions. That’s why the company is encouraging suppliers to locate as close to distribution centers as possible. “By combining our efficiencies and our scale with our supplier partnerships, we can create the most affordable shopping experience as we look for more ways to pass on savings to our customers,” she told suppliers. “For example, when a supplier is located closer to our store network, we can cut our transportation costs, and that's a win-win for us both that translates to lower prices for our shoppers and it's better for the planet.” That could mean doing things differently than Aldi has in the past, such as establishing new relationships with suppliers, according to Kavanaugh. “For some suppliers, it may make sense to enter a long-term agreement with Aldi to further reduce your risk. This is something you've asked us for, and we're more open to it than ever before,” Kavanaugh said at the supplier summit. “We have quite a few success stories already of these long-term agreements, and as your partner we want to make sure that you feel confident in growing with us.” Scott Patton, Aldi USA vice president of national buying, said during a presentation at the summit that many suppliers have voiced interest in long-term agreements with the company. “(Long-term agreements) and joint business plans can help allocate capital in ways you can feel confident about and help you grow your business securely,” he told suppliers. “Over the past three years, we've entered into several types of these agreements that have allowed our key partners to invest in new facilities, new production lines, and new technology.” Sustainable refrigeration The growth of Aldi’s brick-and-mortar footprint also means a reduction in environmental refrigerants that leak carbon monoxide into the atmosphere. The grocer was recently recognized by the non-profit Environmental Investigation Agency (EIA) as the U.S. leader in the adoption of ultra-low Global Warming Potential (GWP) refrigerants. These green refrigeration systems replace hydrofluorocarbons that leak CO₂ into the atmosphere. “Emissions from refrigerant leaks among all U.S. supermarkets are estimated to equal 65 billion pounds of coal burned in a year,” the EIA report, released on May 6, noted. The EIA said Aldi is one of the only five grocers that discloses its annual leak rate, which stood at 20%. “This year, the company committed to using natural refrigerants in all new and existing stores by 2035, the first U.S. company in the sector to set this target. It uses entirely ultra-low GWP refrigeration systems at 30% of stores, in all standalone equipment, and in all distribution centers.” Aldi has deployed environmentally friendly refrigeration systems at more than 700 stores, Wiora told Supermarket News. “As we advance our growth journey, Aldi is committed to using natural refrigerants that keep our products fresh while supporting a healthier planet,” she said. “Our leadership in natural refrigeration was further solidified by Aldi once again receiving the EPA’s GreenChill Store Certification Excellence recognition in 2023.” Read more: As Aldi grows, so does its environmental impact (supermarketnews.com) #smartdiscount #usa #aldi #growth #sustainability #recycling #environment #pilot #awards #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi UK is outfitting its own private label chips packaging with recycled plastic in a “UK supermarket first.” The UK’s fourth-largest supermarket is incorporating a minimum of 35% recycled content across its Specially Selected Hand Cooked range, which has already rolled out nationwide. Its own-label popcorn and lentil chips are set to follow toward the end of the year. The change is expected to eliminate 78 tons of virgin plastic from use annually and forms part of the supermarket’s target to include 50% recycled content into its plastic packaging by 2025. “At Aldi, we are continuously making changes when it comes to reducing plastic waste, and we know how important this is to our customers too,” says Luke Emery, Plastics and Packaging director at Aldi. “Increasing the recycled content in our crisp packaging is just one way we are helping our customers to reduce their environmental impact, with all these little changes adding up to make an even bigger difference.” This is the latest move in Aldi’s continuing efforts to reduce its environmental impact and develop alternative packaging for its products. Last month, Aldi introduced 100% recycled PET (rPET) on some of its own-brand washing up liquid bottles, while in April it was the first supermarket to move to 100% rPET for its own-brand soft drinks and bottled water range in England and Wales. In other recent moves, Aldi has rolled out the “UK’s first” supermarket own-brand flat wine bottles within its Chapter & Verse label. The recyclable ergonomic packaging concept is made from 100% rPET and available for shiraz and chardonnay options. Read more: Aldi repackages own-label chips in recycled PET bags (packaginginsights.com) #smartdiscount #uk #aldi #sustainabiltiy #pioneer #recylcing #rpet #packaging #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain BİM's gourmet market brand in Turkey File Market will abolish cash payment in some markets and serve only with credit and debit cards. File Market has officially announced that it will abolish cash payments in some of its markets and will only accept payments by credit and debit cards. In the statement made by File Market, "Dear customers, as of 08.07.2024, payment will be made only with credit/debit cards in order to provide you with a more practical, fast and hygienic shopping experience for purchases made in this store." BİM's gourmet chain, File Market, plans to make similar changes in its other branches if this pilot is successful. On social media, there are various reactions to this new policy of File Market. Some customers welcomed the change. Others criticized the situation as "restrictive". Read more: (+9) File Market bazı mağazalarında nakit ödemeyi kaldırmaya hazırlanıyor (ortakalan.org) #smartdiscount #file #turkey #bim #cashless #stores #digitalisation #payment #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi Australia is shaving nearly $15 off Australians' grocery bills when compared with the same items sold at Coles and Woolworths, where the difference in prices is just 75 cents, according to a new report by Choice. The recent report, released by the consumer advocacy group, comes as the supermarket giants face ongoing allegations of price gouging to record massive profits, and remain the subject of a number of inquiries. Choice was commissioned to conduct the reports by the federal government, which gave the organisation AUD$1.1 million in the federal budget to produce a report every three months for three years. To conduct its research, Choice sent "undercover shoppers" to 81 supermarkets around the country in March to record prices of 14 different products and determine which chain offered the best value for money. Choice found the average basket of groceries purchased at Aldi cost AUD$51.51, approximately 25% less than the same basket of goods at Coles and Woolworths. Choice's shopping list: Apple Carrots Weet-Bix Sliced white bread Flour Penne pasta White sugar Tea bags Tinned diced tomatoes Block of tasty cheese Full-cream dairy milk Frozen peas Beef mince Butter Source: Choice Supermarket Basket Survey, June 2024 The items at Woolworths cost an average of AUD$68.58, while Coles had the most expensive basket at AUD$69.33, meaning there was just 75 cents difference between the two major supermarket chains in Australia. "Aldi is the best value when it comes to groceries across the nation," Choice CEO Ashley de Silva told The Business. "One of the things that we saw is that Aldi's prices across the stores that we visited were reasonably consistent, you get a bit more variation in Coles and Woolworths." However, factoring in specials, the cost of items at Woolworths totalled AUD$64.93, while the items at Coles cost AUD$68.52. Choice noted that there were no specials on offer at Aldi at the time of shopping. Mr de Silva said Choice determined its supermarket basket of goods after consulting its supermarket experts, who selected grocery items that are purchased frequently by Australians regardless of where they live. Not all baskets are created equal The Choice report highlighted that Australians are paying different prices depending on where they live, and people in areas without Aldi stores were often slugged with higher prices at the check-out. "For people who aren't near an Aldi, and there's still quite a few of those, it does really matter where you live when it comes to what you pay for groceries at the supermarket," Mr de Silva said. "For example, places like Tasmania and the NT don't have Aldi stores, so people there by default are going to be paying higher prices. But even in states like WA where Aldi is present, people there on average pay about AUD$1 more for the same basket of goods. "It differs too between city and regional areas, so metro folks are paying about 70 cents more for that same basket of goods." In lieu of Aldi's presence in the Northern Territory and Tasmania, Choice compared grocery prices for 10 items sold at four IGA locations, finding that the items were more expensive compared to Coles and Woolworths. Further analysis on IGA's prices was not conducted in other jurisdictions. According to Choice, Coles and Woolworths combined make up 65% of Australia's supermarket sector. Aldi contributes 10% to the sector, while IGA accounts for 7 per cent. In a statement, Aldi said the data from Choice clearly showed its commitment to being "Australia's most affordable supermarket" that provided "high-quality groceries at the lowest possible price". Representatives for Coles and Woolworths both noted that current prices were available on their respective websites, apps and catalogues, and were committed to delivering competitive prices for their customers. The tactics Coles and Woolworths use to keep prices high, and competitors out "We welcome Choice's contribution, however, it is unclear whether like-for-like products are being compared," a Coles spokesperson said. The ABC contacted Metcash, the parent company of IGA, for comment, but did not receive a response before publication. Choice said its report compared prices between national brands and comparable supermarket brand or budget brand options. However, the report noted that "some national brand products will be available at Aldi" specifically Weet-bix and Lipton tea and used "comparable products" or other items, such as home brand flour. "We weren't looking for just the cheapest price, we were really making sure that the products were comparable across what different supermarket chains offered," Mr de Silva said. "We get into quite a lot of detail around making sure that the sizes are similar, but also even down to the nutrition information to represent quality, so that we really felt like we were comparing fairly." 'Not a duopoly, but a monopoly' Greens Senator Nick McKim, who recently chaired a Senate inquiry examining the country's supermarket prices, said the findings from Choice were proof that price gouging was taking place. "Extraordinarily, there is only around a 1 per cent difference in price on a basket of staple food items between Coles and Woolworths, and that shows that a choice between Coles and Woolworths is basically no choice at all," he told The Business. Senator McKim, who publicly grilled the supermarket bosses as part of the Senate's supermarket inquiry, said the data from Choice was at odds with the evidence the committee heard in April. "The CEOs of Coles and Woolworths were really clear in the evidence they gave to the Greens-led supermarket inquiry, that they cross-check their prices with the person they described as their major competition as a regular basis," he said. Aldis are almost everywhere, but why are there none in Tasmania? While Tasmanians can shop at 17 Coles and 32 Woolworth supermarkets, there are no Aldi stores and that won't be changing anytime soon, according to the company CEO. "Ultimately, what the Choice data and prices show is that because of that cross-check, there is effectively not a duopoly, but a monopoly in the supermarket sector in Australia. "It really doesn't matter whether you shop at Coles or Woolworths, you're going to pay almost identical prices for your food." The Tasmanian senator said it was disappointing that residents in his home state and in the Northern Territory were being charged more for groceries due to Aldi's absence. "It was really disappointing that Aldi said they weren't considering expanding into Tasmania and some other parts around the country because it would give Tasmanians the opportunity to get cheaper food and grocery prices," Senator McKim said. "But this report is not going to tell Australian shoppers much that they don't already know, and that is Coles and Woolworths are price gouging them, that there is not enough competition in the supermarket sector, and that we need to make price gouging illegal in Australia." 'Supermarket Olympics' benefits shoppers Assistant Minister for Competition Andrew Leigh said not only would households benefit from Choice's supermarket price comparison reports, but it would also place greater scrutiny on the supermarket giants themselves. "Our supermarket sector is among the most concentrated in the world, and so it's only fair that we have appropriate scrutiny of prices," he told The Business. "Now, by funding it through the Commonwealth, we've got all that data out in the open, available to everyone. "There'll be a supermarket Olympics taking place every three months, judged by Choice, in the interest of Australian shoppers." Dr Leigh said the government was hoping that a recurring spotlight on supermarket prices through the publication of the Choice reports for the coming three years will benefit every household. "This is setting up a healthy competition between our supermarkets, providing high-level price scrutiny, allowing shoppers to know where they can get a better deal," he said. "So if there's a race to deliver the best prices for consumers, then Australian shoppers will be the winners." The Choice reports were part of the government's focus on monitoring the country's supermarket sector, Dr Leigh said, specifically referencing the review into the food and grocery code of conduct by former Labor minister Dr Craig Emerson, which is due to be finalised by the end of June. The Australian Competition and Consumer Commission (ACCC) is also conducting its own inquiry into supermarket prices, with its interim report due to be handed to the government by the end of August. Read more: Australians paying 25pc less for groceries at Aldi compared with Coles and Woolworths, Choice report finds - ABC News #smartdiscount #aldi #australia #newzealand #tasmania #expansion #coles #woolworths #IGA #prices #basket #essential #choice #cheapest #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google