Where and how do you do your grocery shopping? Do you shop online? Or visit the supermarket? Do you shop daily, weekly or monthly.? Does where you live affect what you pay?
All of these options affect prices as the supermarket giants compete for customers. I did a bit of internet looking as analysts are saying that the huge investment into price cuts at Woolies will not make a lot of difference. Why is that?
A survey in 2009 showed that Aldi was not only cheaper but popular, people perhaps finding the combination of quality with good price attractive. Despite a rise in overall sales for Coles and Woolies since then, your Aldi basket is still cheaper – wherever you live. The increase of costs in certain areas are due to multifaceted reasons, transport, regional differences in size and what is retailed ad local competition.
One thing is clear the “Aldi Effect‘ is alive and kicking. This simply is a term to describe how that shopping at supermarkets within a kilometer of an Aldi supermarket significantly lowers the cost of your basket. This lower cost often is associated with bargain offers on leading brand names but equivalent goods at Aldi are cheaper. As more and more supermarkets offer private labeled goods and the reputation of said goods has improved, with many people believe the quality of these labels are as good as leading brands. There is a potential drawback to this trend through, a hidden cost, as private labels attract the sales more and more niche brands are disappearing from the shelves and choice could start to be limited. This article from 2014 might be even more relevant today than it was then.
I find more and more of the niche brands I used to buy at the supermarket I have to go online to purchase, lessening my choice of availability is also reducing the number of times I will go physically to the supermarket. If I am going to shop online which is easy to do I might as well do all my shopping that way. Anyone else concerned about having reduced choice? what are your feelings regarding your weekly/monthly shopping?
So why will Woolies not attract more customers with its cut prices, numerous reasons, competitors reducing prices too, less choice, confidence in the integrity of the company declining. How do you think a price war will impact your weekly shopping? Let me know in the comments below.