Price-gouging in Aussie supermarkets: Where does consumer loyalty lie?

An ongoing investigation into alleged price-gouging by major Australian supermarkets has coincided with shifts in consumer behaviour and brand perception, according to data from YouGov BrandIndex. While legal proceedings continue, Aldi appears to be gaining ground amid consumer concerns about the cost of living.

YouGov's data reveals a decline in customer satisfaction with the retail sector (including high street retail, supermarkets, and liquor retailers) from January 16, 2023 to January 13, 2025. This period encompasses increased public discussion of price-gouging, the launch of an official inquiry, and the subsequent announcement by two major retailers that they would contest the allegations.

Impact on retailers: The consideration and perception shift

Aldi, perceived as the most affordable option, has seen its 'consideration score' (measuring consumer willingness to purchase from a brand) rise from 48% to 50% between January 2023 and January 2025. Conversely, both Woolworths and Coles experienced a substantial drop in consideration, falling from 66% to 56% and 63% to 57%, respectively, during the same period.

The perceived value offered by the major supermarkets also took a hit. Coles' Value score plummeted from 34 to 18, and Woolworths' dropped from 35 to 13 between January 2023 and January 2025. Aldi, meanwhile, saw a slight increase in its value score, rising from 43 to 45. This reinforces the narrative that consumers are increasingly seeking value in the face of rising prices and perceived unfair practices.

Frequent shoppers drive changes in purchase intent

Analysing the purchase intent of frequent shoppers (those purchasing groceries at least weekly) reveals a more pronounced shift in behavior. Aldi's purchase intent score rose from 16% in January 2023 to 21% in January 2025, peaking at 24% in August 2024. Woolworths suffered the most significant decline, falling from 39% to 30% during the same period. Coles experienced a less dramatic decrease in purchase intent.

This data suggests that the ongoing price gouging investigation and the subsequent legal battles are reshaping the Australian supermarket landscape. Consumers are actively seeking value and potentially shifting their loyalty towards perceived more affordable options. The long-term impact on market share remains to be seen, but the current trends indicate a challenging environment for major retailers like Woolworths and Coles, while presenting an opportunity for Aldi to solidify its position in the market.

Methodology: YouGov BrandIndex collects data on thousands of brands every day across several brand health metrics. Above data is based on daily surveys between January 1, 2023 and January 2, 2025 of adults aged 18 years and above residing in Australia. 

Laura Robbie, CEO of APAC at YouGov.