Analysing the Flaws in Choice's ‘Cheapest Supermarket’ Report

Introduction

The recent report by Choice on supermarket prices in Australia claims to reveal the cheapest supermarket chain based on a survey of 14 common grocery items. This report has significant implications for consumers and the retail industry. However, upon closer examination, the methodology and conclusions of the Choice report appear to be fundamentally flawed. This executive summary by CHATO International aims to debunk the Choice report and highlight the necessity for accurate, fair, and detailed consumer advocacy.

Background Data

• Aldi: 90% of its stock consists of private label products.

• Coles: Approximately 35% of its stock is private label products.

• Woolworths: Similarly, around 35% of its stock is private label products.

Key Points of Concern

Inadequate Comparison of Product Range

• Aldi's business model focuses predominantly on private label products, which limits consumer choice.

• Coles and Woolworths offer a broader range of products, including national brands and private labels, providing consumers with more options.

• The Choice report does not account for these fundamental differences in business models, leading to an unfair comparison.

Price Discrepancies in Reported Data

• An online survey conducted by CHATO International yielded a low basket price of less than $57 for both Coles and Woolworths.

Lack of Detail in Product Specifications

• The Choice report lacks details regarding the size and specifications of the products purchased.

• This omission is critical as it affects the comparability and accuracy of the reported prices.

Inadequate Survey Guidelines

• The “shop guidelines” used by Choice did not accommodate the different business models of the supermarkets.

• Aldi's dominance of own-brand products versus the mixed model of Coles and Woolworths was not sufficiently accounted for in the survey design.

Due Diligence and Methodological Concerns

• The publicly funded Choice report raises concerns about the due diligence exercised in planning and executing the survey.

• A comprehensive and fair comparison would require a high-low comparison of the choices available at Coles and Woolworths, which was not adequately performed.

Contradictory Findings from Independent Reviews

• The online review by CHATO International supports Coles' claim of a significant difference in basket prices compared to those reported by Choice.

• Such discrepancies point to potential errors in the Choice report's methodology and data collection process.

Conclusion

Based on the analysis, it is evident that the Choice report contains significant flaws that undermine its conclusions. The report's lack of detail, inadequate comparison methods, and failure to account for different business models render its findings unreliable. As such, CHATO International calls for a public retraction of the Choice report and advocates for more rigorous and transparent methodologies in future consumer price surveys.

Call to Action

CHATO International is committed to addressing these issues and advocating for both business and consumer rights. We will be seeking public funding to launch a advocacy initiative aimed at ensuring fair and accurate planning of all levels of public initiatives  and reporting and protecting consumer interests.

This document remains the property of CHATO International Pty Ltd (CI) use transmission or dissemination in any form requires written permission from CI.