Prices to be slashed further as supermarket war continues

The competition between Aussie supermarket giants is about to heat up yet again as grocery prices are being slashed even further.

Aldi is the new player in a market that was once dominated by two grocery giants – four new Aldi stores opened in Perth in the last week alone.

Retail analyst Barry Urquhart said: “The latest studies show that if you shop at Aldi versus the two major supermarkets you can save as much as 29% on your weekly shopping bill.”

Also read: The latest winner of the Aussie supermarket price war

But the big players are now stepping up.

Woolworths has dropped prices by $475 million to win customers back.

“The introduction of Aldi has introduced more competition, and with more competition, prices are down, they will stay down and they’ve got a way to go yet,” Urquhart said.

But it’s farmers that could pay the price as the supermarkets go to war.

The price cuts are often passed on to them, cutting any profit for producers.

“We’ve got bananas at 89 cents and most the chains have got them at $1 – we have never seen that before in WA and just one of the examples which show how competitive it has become,” said fresh food market Spudshed’s owner Tony Galati.

Also read: UBS tips Aldi to win a price war

Expansions are another way big retailers are trying to counter the competition of Aldi.

Comeptiton in the WA market has never been so intense, and there are more savings to come for consumers.

That’s because, in the next six months more than 35 new supermarket outlets will open.

And who will win this supermarket war?

“The consumers, unquestionably, and it will be showing in their pocket,” Urquhart said.