Shoppers at Aldi are paying on average 14 per cent less than those at Coles and 12 per cent than those at Woolworths for the same goods, according to a study.
The study by Fairfax Media found that, of 125 branded products available from an Aldi store in one suburb, 36 were also available in neighbouring Coles and Woolworths stores.
The products included in the comparison included Coke, Tim Tams and Weet-Bix.
Paul Foley, an ex-Aldi executive explained how Aldi can offer cheaper prices on these goods.
“The brands they stock are generally those where either the quality available from private-label suppliers is inferior and not comparable, like [laundry detergent] OMO, or the marketing behind that brand is so huge that the consumer demands it, like the cola from Coke,” he said.
“However the deal between the supplier and Aldi is; first Aldi will take a larger pack size, often a pack size that is exclusive to Aldi so some economy is represented here and that Aldi does not embarrass other bigger retail customers (Woolies and Coles) of the brand with its selling price.
“Inevitably this means the discount per kilogram or litre on these branded items is nowhere near the discount Aldi offers on private label items.
However, according a Coles spokesman, the survey did not represent normal consumer behaviour or an average shopping basket.
He told the SMH that promotional specials can make products at Coles much cheaper than competitors.