New arrivals often stick to whichever supermarket happens to be closest to their first Australian address, and end up overpaying for months without realising it. The gap between the major chains is bigger than most people expect, and it’s not just about which one is “cheap”, it’s about knowing what each one is actually good for.
Quick answer: According to CHOICE’s ongoing government-funded basket surveys, Aldi is consistently the cheapest of the major supermarkets, typically 15-25% below Coles and Woolworths on a comparable basket. Coles and Woolworths are usually within a dollar or two of each other, with the real difference coming down to loyalty programs, range, and specials rather than base pricing.
What the Actual Data Shows
CHOICE, Australia’s independent consumer advocacy body, runs regular funded basket surveys comparing the major chains. Their most recent results have consistently found Aldi’s basket coming in noticeably cheaper than the equivalent basket at Woolworths or Coles, with the gap sometimes reaching $15-25 depending on what’s included and which items are on special elsewhere. Coles and Woolworths, by contrast, tend to land within a dollar or two of each other on a like-for-like basket.
Why Aldi Is Cheaper (and What You Give Up)
Aldi runs a fundamentally different model, a much smaller range (roughly 1,800 product lines versus 30,000+ at Coles or Woolworths), heavy reliance on its own private-label brands, and no loyalty program to fund. This keeps shelf prices consistently low without needing catalogue specials to compete, what you see on the shelf is close to the real price every week.
The trade-off is range and brand availability. If you specifically need a particular international brand, a wide range of specialty or dietary products, or the convenience of one-stop shopping for household goods and groceries together, Aldi’s smaller range can mean an extra stop at another store anyway.
The “Mixed Basket” Approach
Most Australians who actually save the most money don’t shop exclusively at one chain, they buy staples and pantry basics at Aldi, then top up fresh produce, specific brands, or household items at Coles or Woolworths when there’s a genuine special. This approach tends to capture most of Aldi’s savings without sacrificing range entirely.
Loyalty Programs: Worth More Than People Think, But Not a Silver Bullet
Everyday Rewards (Woolworths) and Flybuys (Coles) both return real value over time, but typically only a few dollars per shop in points value on their own, not enough to close the gap with Aldi’s base pricing. Where they add genuine value is stacking with fuel discounts, member-only specials, and cashback offers, worth signing up for since they’re free, but not a reason to pay significantly more on your base shop.
Watch for 2026’s New Pricing Rules
New Australian regulations banning supermarket price-gouging practices took effect from 1 July 2026, following scrutiny of major chain pricing behaviour. This is expected to increase price competition and pricing transparency over the second half of 2026, worth keeping an eye on if you’re deciding where to do your main shop.
Practical Tips for Newcomers
- Compare a basket of your actual regular items across stores in your first few weeks, rather than assuming one chain is cheaper across the board
- Sign up for both Everyday Rewards and Flybuys, they’re free and occasionally offer genuinely good targeted deals
- Check unit pricing (price per 100g or per litre) rather than package price, especially when comparing different pack sizes between stores
- Don’t assume home-brand equals lower quality, particularly at Aldi, where private-label quality has improved significantly
Groceries are usually the easiest expense to control on a working holiday — see what a realistic weekly budget in Australia actually looks like for the full picture beyond just the supermarket.
Final Thoughts
There’s no single “cheapest supermarket” answer that applies to every household, it depends heavily on what you actually buy. But if you’re setting up your grocery routine for the first time in Australia, starting with Aldi for staples and topping up elsewhere is the approach backed by the most consistent independent price data.
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*This article is for general informational purposes only. Grocery pricing changes frequently and varies by location, figures cited reflect recent CHOICE survey data and may not reflect current prices in your area.*