Supermarket price survey 2009

Our national survey reveals the true price we pay at the supermarket
 
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03.Cost of groceries: states and cities compared

Our survey results show that residents of Geelong, the NSW Central Coast and Forster pocket more change from their weekly shop, while those who live in Hobart and Bunbury pay a premium. The results by state are along similar lines – NSW, Queensland, ACT and Victoria have the cheapest groceries, and Tasmania the most expensive. (See tables, below).

Paying dearly for where you live

Geographical price differences can be explained by a range of factors, including increased delivery costs to regional stores, regional differences in the size and characteristics of demand and differences in local competition. According to the ACCC, higher prices in Tasmania, WA and NT are largely the result of two factors: a higher cost of goods (due to greater transport costs and reduced economies of scale) and “perhaps” a less competitive environment (in Tassie, the average distance from a major chain store to its nearest competing supermarket is more than double the national average – and Woolworths has a majority share of the wholesale supply market). And of course, none of these states has Aldi.

To CHOICE, the need for more effective competition in these areas is obvious.

 

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The cost of groceries - states compared The cost of groceries - states compared
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