How to be a winner in the supermarket wars – Big savings from small change

In 2016, the average Australian household grocery spend was between $100 for a single person to more than $300 for a family of four, each week.  This adds up to thousands of hard-earned dollars every year.

If you were investing the equivalent in shares or super, you would research to ensure you maximised your return.  Yet, many of us overlook the financial benefits of saving money on our regular grocery shopping.

While it may seem like small change, it is exactly these types of savings that can really add up, translating in the long term to greater wealth and control over your financial future.

Shoppers in Australia have long been reliant on the supermarket duopoly of Coles and Woolworths. Now with more than 470 stores Australia wide, the price-savvy shopper’s favourite, Aldi are increasing their share of Australia’s $100 billion grocery market.

There is little doubt that Australian shoppers are benefitting from the growing competition for our grocery market. And, as consumers we are now in a better position to choose how, when and where we do our shopping, and more importantly, how to save money in the process.

Do your research and be strategic

Supermarkets are designed to tempt you with strategically placed discretionary (and profitable) products. Your best counter-strategy is to prepare a list in advance, with food products based on advance meal plans. 

Don’t fall for fancy packaging

One of the more clever strategies of Aldi was to brand and package their generic products in a more appealing manner than the competing home brands Australians were previously familiar with.

Regardless of packaging, the reality is there is very little connection between packaging and quality. In Australia, many generic products are manufactured and sold to the supermarkets by the big name brands, so that less expensive home brand cheddar is just as likely to be produced by the recognised big brand! 

Read the labels

Learn to read the labels. For instance, in laundry soaking products the generic brands can be just as effective as the pricier brands – based on the active ingredients listed on the label. You don’t have to do this for every product, every time you shop, because once you know a product compares favourably with a more expensive brand, you’ll be better informed going forward. 

Stock up on sale items

If you regularly consume a certain product such as coffee and your preferred brand is drastically reduced in price, stock up. Sales come and go and it makes sense to take advantage of a temporary price drop. While this strategy applies only to non-perishable products you regularly use, over time you can save considerably.

 Other savvy shopping strategies

There’s no shortage of strategies supermarkets employ to gainfully part you with your money. Some of the more obvious ones include charging more for excess packaging, so if you’re the type of shopper that insists on fruit and vegetables to be individually packaged, expect to pay more. Alternatively, you can choose to be kind to the environment, while you save money on unpackaged produce.

One of the greatest cons in countries like Australia is exorbitantly priced bottle water. While a bottle of Italian sparkling water can be a nice treat at a dinner party, again, save your money and the load on landfill and enjoy our high quality tap water, filtered as required.

Other retail tricks include products being priced higher for women and children. This retail nasty includes the identical razor in pink being twice the price and a wide variety of everyday products targeted for children being sometimes, wickedly more expensive. Again, read the labels and apply discernment rather than assuming the manufacturers and retailers have your best interests at heart.

Apps and sites that help you save

If you search online you can find a number of apps and websites that can assist in comparing products and prices that much easier. Remember, while the savings may seem small in the short term, in the long term they can add up to be significant!

It’s taking simple steps to saving money that can put you in a better financial position in the long term. If you would like to speak to someone about your financial future, contact us at Campbell Green.