Shopper loyalty driven by price

Nine in 10 Australian shoppers say they would switch supermarkets to save money on their grocery bill, according to new research conducted by Galaxy for Aldi Australia.

On average, survey respondents said that a 38 per cent saving would compel them to change where they buy their groceries, while 14 per cent would switch to save any amount.

Aldi’s Grocery Wallet Research surveyed more than 1000 main grocery buyers across Australia to investigate the impact of factors like freshness, price, and convenience on supermarket spending and loyalty.

“At Aldi, our priority has always been to provide shoppers with high quality groceries at permanently low prices. Our research shows that now more than ever, people are conscious of how and where they are spending their dollars – and this is having a significant impact on supermarket loyalty,” an Aldi Australia spokesperson said.

Unsurprisingly, the highest number of main grocery buyers nominated the price of groceries as the reason they would become a return shopper (27 per cent), compared to other factors such as convenience (14 per cent).

It’s not just prices that are shaking up the supermarket sector, with freshness and country of origin also influencing supermarket loyalty.

One in five (22 per cent) shoppers said they would switch supermarkets if they knew they could get fresher products elsewhere, while nine in 10 (89 per cent) want to allocate more of their weekly spend to fresh food* – on average 22.1 per cent of their budget or $32.90 per week. The cost of items was central to this decision, with 51 per cent of people agreeing they would buy more if they knew they were getting the best price.

The most motivating buying decision that divided generations was whether products were Australian Made. Among all respondents, Baby Boomers were more likely to rank Australian made products as very important to them (59 per cent), compared to 41 per cent of Gen X and 36 per cent of Gen Y shoppers. Women also felt more strongly about their store supporting Australian products, at 50 per cent compared to 38 per cent of men.

“Aldi understands the growing preference for locally made products, which is why we focus on working with local suppliers to provide high-quality products for our shoppers,” an Aldi Australia spokesperson said.

“Independent audits have confirmed that 91 per cent of Aldi’s fresh fruit and vegetables are Australian grown, while 100% of our fresh meat, eggs and bread are Australian Made, and we know this is important to our customers.”

The research showed that on average, main grocery buyers are spending $145.70 on their weekly shop. Single person households spend $93.70, two-person households $134.60 and $184.20 is spent in households of three or more people.

*Fresh food includes meat, dairy, eggs, bread, fruit, and vegetables. 

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