Yahoo Finance Cost-of-living crisis forcing millions of Aussies to make Coles and Woolworths switch
Coles and Woolworths shoppers are finding the rising cost of living is impacting the way they do their groceries.
A new shopping trend has emerged among Coles and Woolworths shoppers as Aussies look for ways to cut back on rising grocery costs.
Nearly half (45 per cent) of Aussie shoppers are switching to home brand options in order to stretch their grocery budget further, new research conducted by NielsenIQ for the 2024 Product of the Year Awards has found.
This percentage was higher for Aussies on lower incomes of $40,000-$59,000 per year, as well as females and those aged 45-54.
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This cost-cutting tactic has been reflected in the winners of the annual awards, with both Coles and Woolworths taking home gongs for their home-brand, deli and bakery products.
Product of the Year director Sarah Connelly said the rising cost of living had changed the way Aussies shopped, with affordability the leading driver of purchasing decisions.
The survey of more than 5,000 Aussies also found three in five shoppers were cutting back on snacks and indulgences like chocolates, desserts and premium nuts to save money.
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“Whilst snacks and treats were commonplace in the shopping trolley before living expenses started to increase exponentially, these are now classed as luxury items rather than a need, with many shoppers viewing snacks as a low priority when it comes to feeding the family,” Connelly said.
About 86 per cent of shoppers are using cost-saving techniques to save on groceries. Other cost-cutting tactics included switching to cheap cuts of meat (42 per cent), cutting back on food delivery (40 per cent), eating more home-cooked meals (40 per cent) and eating leftovers (38 per cent).
Coles took out 19 of the 44 award wins, including for its Coles and Coles Finest products, while Woolworths received 10 awards. However, Aldi took out the top spot for the “most affordable”.
3 in 4 Aussies feeling stressed
Around 78 per cent of Aussies were feeling stressed about their financial situation in November, Finder’s Consumer Sentiment Tracker found, with 26 per cent saying they were “extremely stressed”.
With Aussies feeling the pressure over rising costs, Finder personal finance expert Amy Bradney-George said any opportunity to cut costs was appealing.
“For some people, that could mean switching to home-brand products at the supermarket or cutting back on snacks and treats like chocolate,” she told Yahoo Finance.
“It could also mean buying fruit and vegetables when they’re in season, or stocking up on non-perishable items in bulk when there’s a good sale.
“Shopping around for better deals is also a great way to save, not just at the supermarket but also on utilities, insurance, account fees and services.”
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