With trust in Coles and Woolworths at an all-time low and the cost of living crisis showing no signs of slowing down, Aussies are looking to make a change in 2025.
Mum Mel told Yahoo News Australia that she had felt a “call” to no longer support the big supermarkets based on “increasing profits” and stories of disgruntled suppliers. “I became fed up with my local supermarkets only having half of the items on my list and the produce they did have being really poor quality,” she said.
In October 2024, she took action and searched for alternative retailers for her weekly shop. Now, she uses a combination of online retailers and smaller local shops. “I find the quality so much better,” she said, adding that the prices are “pretty comparable” and that surprisingly, it’s also “really convenient.”
More Aussies making big supermarket shift
After sharing her experience online, Mel found that more and more Aussies were doing the same thing. “I’m also boycotting,” one woman shared with others pledging to do the same.
Mel believes people are looking for “something different” in the new year. “I think a lot of people are seeking something different this year but are scared to make the jump or have a fear that it will add pressure financially,” she said.
“I think there has been a big shift given the increase in cost of living and platforms like TikTok giving farmers and growers a voice.”
Shoppers are becoming increasingly critical of Australia’s major supermarkets. Source: Getty
Ethical consumption at the forefront of consumer’s minds
Consumer specialist Professor Gary Mortimer from Queensland University of Technology (QUT) told Yahoo that while the new year usually brings goal setting, commitments to becoming an “ethical consumer” are increasingly common.
“The idea of being an ethical consumer focuses on shifting our share of the wallet from major supermarkets to local retailers,” he explained. “We tend to start the year with some audacious and ethical goals. The challenge of course is the distance between intentions and behaviour.”
Mortimer added that “cost of living will continue throughout this year” and as a result, consumers will be more focused on items that create “better value” than the “cheapest”.
“Buying cheap is great, but buying great value is better,” he said.
Aldi has also been a saviour for many Australians struggling with the cost of living as consumers look to make savings in their grocery budgets. Mark Serrels, editorial director at consumer advocacy group CHOICE, previously told Yahoo that Aldi will continue to expand this year as shoppers move away from Coles and Woolworths.
“First, in this cost of living crisis, the supermarkets have been making record profits so there’s the sense they are making heaps of money while consumers are struggling,” Serrels said.
“Consumers have also become cynical about specials.”
CHOICE has repeatedly fielded complaints from shoppers lifting specials tags and finding the same or lower prices underneath.
“It’s all about these big red labels and low price deals but when they aren’t actually deals, consumers trust a little less,” he said.
What will supermarkets be doing differently in 2025?
Mortimer believes that both Coles and Woolworths will be working hard to improve their reputations in the new year.
“It’s fair to say that they’ve had a pretty big hit to their brand reputation both falling out of the top 10 most trusted brands report from Roy Morgan,” he said. “I think they’ll be working towards strengthening that brand trust again and reconnecting with their core consumers.”
It follows a senate inquiry into grocery pricing and the Australian Competition and Consumer Commission (ACCC) launching legal action against Coles and Woolworths for alleged breaches of consumer law in September.
The government has passed legislation to overhaul Australia’s merger system to encourage healthy competition and cracked down on shrinkflation in a bid to help the cost of living pinch in supermarkets.
The Food and Grocery Code has also been made mandatory with multi-million-dollar penalties for harmful breaches.
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