The Real Cost of Brand Loyalty: Data from 11 Australian Cities
Standing in the grocery aisle wondering if you're getting the best deal? I decided to answer that question with data instead of guesswork.
After developing price tracking tools over several months, I had the capability to run a comprehensive analysis across Australia's major grocery retailers. The results explain why finding the "cheapest store" isn't straightforward - and reveal some surprising patterns about how we shop.
How I Tracked the Data
I analyzed the same 50-item shopping list across ALDI, Coles, and Woolworths in 11 cities: Melbourne CBD, Toorak, Box Hill, Dandenong, Ballarat, Sydney CBD, Bondi, Brisbane CBD, Surfers Paradise, Adelaide CBD, and Perth CBD.
The shopping list covered everything a typical Australian household buys: fresh produce, meat and seafood, dairy and eggs, pantry staples, frozen items, and household products. I focused on these three major retailers due to time constraints, though I'm planning to add IGA data in future analysis.
What the Numbers Revealed
The patterns were clearer than I expected, and they held true across every single city I analyzed.
ALDI came out ahead on price at around $200 for the items they stock, but here's the catch: they only had 82% of my shopping list (41 out of 50 items).
Coles and Woolworths were nearly identical at about $258 each. Coles had slightly better availability at 84% (42/50 items), while Woolworths matched ALDI at 82% but with different gaps.
Why ALDI Can't Be Your Only Stop
ALDI's lower prices come with strategic limitations. They focus on house brands and select national brands, which means:
- Fewer options in certain categories (limited flavors, sizes, or varieties)
- Different brand selections compared to Coles and Woolworths
- More focused product ranges rather than comprehensive choice
For example, ALDI might have breakfast cereal, but not the specific type your kids prefer. They might stock ice cream, but not in the flavors or formats you want. These aren't random gaps - they're deliberate positioning decisions that keep costs down but limit choice.
The "Perfect Shopping" Reality Check
I wanted to see what would happen if you bought each item from whoever had the cheapest price, regardless of which store.
The total? $278
That's more expensive than shopping at either Coles or Woolworths alone. Why? Because when your preferred low-cost store doesn't stock something, you're forced to buy it wherever it's available - often at a premium.
This shows why the theoretical "best deal" often doesn't work in practice.
The Geographic Surprise
I expected to find big differences between cities. Surely Melbourne CBD versus regional Victoria, or Sydney versus Perth, would show different patterns based on local competition and costs?
The results were striking: pricing patterns were virtually identical everywhere.
Whether you're in Toorak or Dandenong, Brisbane or Perth, the relationships stayed the same. ALDI was consistently about $58 cheaper than Coles/Woolworths, with the same availability patterns.
This tells us these aren't local pricing strategies. They're national approaches designed by head offices to position each brand differently across the country.
Three Shopping Strategies That Actually Work
Based on the data, here are the three approaches that make sense:
Strategy 1: Maximum Savings (~$235 total)
Start at ALDI for about 80% of your shopping ($200), then hit Coles or Woolworths for the remaining items (~$35).
Best for: Families comfortable with house brands and willing to make two stops Savings: About $23 per week compared to single-store shopping
Strategy 2: Maximum Convenience (~$258 total)
Do all your shopping at either Coles or Woolworths.
Best for: Time-conscious shoppers who value one-stop convenience Cost: About $23 per week more than the ALDI strategy
Strategy 3: Brand-Focused (~$278 total)
Shop multiple stores to get exactly what you want from whoever stocks it.
Best for: Households with strong brand preferences Cost: About $43 more than ALDI strategy, $20 more than single-store
Which Strategy Wins?
For most families, Strategy 2 (single-store convenience) offers the best balance. You save time compared to multi-store shopping, and the $23 weekly premium is reasonable for the convenience factor.
The Brand Loyalty Price Tag
The data puts a number on brand preferences: about $58 per week. That's the difference between accepting ALDI's house brands and sticking with your preferred national brands at Coles and Woolworths.
Whether that's worth it depends on your family. Some categories show minimal differences between house brands and national brands (basic staples like pasta or cleaning products). Others might matter more to your household (specific cereals kids will actually eat, preferred ice cream flavors).
At least now you know what those preferences actually cost.
What I'm Tracking Next
This analysis captures current patterns, but I'm continuing to monitor these trends to understand:
- How seasonal changes affect pricing relationships
- Whether promotional cycles shift the value equation
- Where new products launch first and how pricing develops
- How adding IGA data might change the picture
The Bottom Line
There's no single "cheapest store" that wins at everything. The best approach depends on what matters most to your household:
Prioritize savings? Use the ALDI + top-up strategy and save real money
Value convenience? Single-store shopping is worth the modest premium
Have strong brand preferences? Factor in the cost when making decisions
The most important insight isn't which store to choose - it's understanding the trade-offs so you can make decisions that align with your actual priorities, not just assumptions about what you "should" do.
Next time you're in that grocery aisle wondering about prices, you'll have the data to make an informed choice instead of just hoping for the best.
This analysis used automated price tracking across 11 Australian cities in August 2025, reflecting standard retail pricing. Want to see how these patterns apply to your specific shopping? Try our price comparison tool to analyze your regular purchases.
