Lower cost items yes, not necessarily purchasing store brands, but lesser quality, quantity and poorer product selections.
How likely to find anyone this side of SkyNews who thinks consumers who have down graded to black and gold because they have a reduced food budget should party because they are spending less?
A pointless discussion splitting hairs over a few percent statistical difference. If we are all cutting back and downgrading and the Food and non-ABs have gone up 8.1%, how much higher would the CPI increase be if we had not? If our standard of living is falling which it is for most it’s hardly a win to say any are ahead by spending less on food.
It’s a while since Choice did a supermarket shop with the standard basket. 2021? Yes I’d like to see an alternate independent assessment. /added
Beans and rice, comes with a celebrity TV recommendation no shareholder of Colesworth should turn down.
Choice must be watching SkyNews…along with CanStar etc.
While Choice’s assessment occurred before recent price rises/inflationary pressures, their conclusion was…
Switching to Coles and Woolworths supermarket brand groceries – also known as ‘private label’, ‘house’ or ‘own’ brand – can offer significant savings. Compared to our national brand basket, you could save $57.67 at Coles and $54.90 at Woolworths for the equivalent private label branded basket – that’s a saving of 40% and 39% at the major supermarkets respectively.
As I indicated above, if a consumer who historically purchased known brands changed to store brands, the potential savings are significant and could be in the order of 40%. These savings would more than offset any recent inflationary price increases.
One doesn’t need another alternative independent assessment. One just needs to go shopping to see price difference between store branded and known branded products. It is also shown commercially by Aldi, which specialises in store branded products and is known by many experts and consumers, as a way to reduce costs on groceries if one isn’t brand loyal and/or willing to have higher imported content in foods they consume.
Well put.
It’s a bold assumption those most stretched for budget are those not already buying the cheapest and lowest cost store brand or Aldi products. How likely this is not already fact?
As previously stated.
However the recent price increases of grocery products were not what Choice assessed back in 2021. It’s an unknown whether the store branded and Aldi products have also increased in cost by the average 8.1% over 12 months, by less, or more.
UBS measured just supermarket prices. The ABS does not report supermarket prices independently of the other items in the index. The two measure slightly different baskets from different sources. The ABS includes take away food in its measure. UBS does not. How likely those on a tight budget buy take away?
Business (and analysts) work on a percent profit that ‘has’ to be made. It is referenced as return on investment, return on capital, margins, and so on. For public companies being profitable is not enough. There has to be enough perpetually increasing profit or the share price of a public company can collapse leading to all sorts of issues. If there is a 10% price rise at each step in the pipeline from producer to end-customer, simplistically there is going to be another (eg) 10% of every 10% added at each step, all fuelling the inflationary amount of the final price in shops.
Pricing is what the market will bear (no surprise) but as an example of rewards points manipulation a product has been $45 and recently was upped to $49.50, but every few weeks there have been 900 rewards points (valued at $4.50) offered for buying it. It is arguable whether the rewards points are a discount or the price has been artificially raised to make it appear the rewards points are a deal. Nothing is free and how the ‘payment’ is packaged varies widely, often with complex opacity.
