Australians are switching supermarkets to save money
More Australians are switching supermarkets to save money as cost of living increases a study conducted by Deloitte and commissioned by Aldi Australia has found.
According to Aldi’s ‘Household Expenditure Report’, over the past 12 months, 25 per cent of Australians have switched the store they shop at the most with 44 per cent listing price as the main reason behind their decision.
In 2015, Aldi’s research found only 31 per cent of supermarket switchers did so because of price.
The Aldi Household Expenditure Report also found 15 per cent of Australians would switch to private label products if day-to-day expenses increase.
Chief Executive Officer of Aldi Australia, Tom Daunt, said Aldi engaged Deloitte to better understand how its customers live and what they value.
“This research helps to shape our opinions on our future product development and ensures we are consistently responding and adapting to changing consumer behaviour,” Daunt said.
Some luxuries now consider necessities for Australians
Some Australians now consider ‘little luxuries’ like Netflix and takeaway ‘essentials’ and are willing to cut back on their groceries to pay for them.
Of the Australians who subscribe to entertainment services like Netflix, 12 per cent said they would rather spend less on groceries than suspend their subscription.
Aldi says it is attempting to appeal to Australians who want little luxuries but do not have the money to spend on them, expanding products in its health, premium and organic categories.
“We’ve also identified from our customers that availability of fresh fruit, vegetables and meat are more than ever,” Daunt said.
“We continue to invest heavily in these categories so our customers can get products of comparable quality to the leading brands at prices that are significantly cheaper than any of our competitors.”
Other key statistics from Aldi’s Household Expenditure Report include:
- One in three Australian households are “feeling the pinch” and are concerned about their ability to pay for expenses
- One third of Australian households are cutting their grocery spending by either switching to private labels or buying less
- In Australia, the private label product category is growing 60 per cent faster than brands
- Private labels are accounting for 24 per cent of total Australian grocery sales
- Asset-poor millennials spend a greater proportion of their budget on ‘little luxuries’ including subscription services and food delivery than average aged Australians (35-54)
- Foodbank Australia releases 2017 Hunger Report
- Aussie country kids worried about getting enough food to eat