Supermarket Sleuths: Why more Aussies don't shop at Aldi

I'm always surprised when I hear less than 10 per cent of Aussies shop at Aldi, when it is repeatedly named the most affordable grocery retailer in the country.

The Australian Competition and Consumer Commission (ACCC) states that as of March 2025, Woolworths accounts for 38 per cent of supermarket sales nationally, followed by Coles at 29 per cent.

Aldi comes in at just nine per cent and then IGA claims seven per cent of the market share. Although Aldi cites their share as being "over 10 percent".

Consumer group Choice named Aldi the most affordable grocery retailer once again, this time when comparing the cost of commonly sold items as well as winter favourites.

Still, its market share has failed to grow significantly when compared to Woolworths and Coles.

Although, in the final report of its supermarket inquiry, the ACCC did highlight Aldi's role in potentially putting downward pressure on prices across the market.

Let's take a look at Aldi's history in Australia, cult following, modest growth, consumer feedback on why they give the discount retailer and miss and Aldi's plans for the future.

Aldi opens in Australia, 'checkout anxiety' ensues

Aldi opened in Australia in 2001, with a store at Bankstown Airport and Marrickville in Sydney.

By the end of 2001, there were 22 Aldi stores across New South Wales. Next, the discount grocery retailer opened stores in the ACT, and then in 2003 the first Aldi opened in Victoria at Heidelberg West. 2004 saw locations open in Queensland, then in South Australia in 2016.

There are now 600 stores across the country, with no significant increase in Aldi's market share.

A quick survey of the 9honey Money office revealed a number of reasons this may be the case.

"I have an Aldi and a Coles five minutes from my house, and I used to shop at Aldi religiously! Unfortunately they're extremely poorly stocked when it comes to veggies and meat and there would be practically no food available mid week," one said.

"Used to do Aldi and Coles combo if I needed a particular item, but now I'm back at Coles full time."

A second 9honey Money staffer also blamed the quality of Aldi's fresh produce.

"Last time I bought fruit and veg from Aldi or bread products it went off really quick," they said.

"We were keen to try the new Aldi near us and save money but it happened two or three times so we haven't gone back at all since Xmas I don't think," another said.

"Plus there is the whole checkout anxiety for me."

The Aldi 'checkout anxiety' phenomena refers to the speed at which customers are expected to transfer items into their trolleys as they are being scanned. Customers are not meant to pack the items into bags at the checkout, but use the benches provided.

Aldi's self-checkouts has eased some of this anxiety.

Aldi's self check outs has eased some of this anxiety.

"I get anxiety from having items hurled at me at the checkout," another confirmed.

"I have one close to me but every time I've purchased meat, fruit and veg from there it doesn't seem to last longer than a couple of days," another said.

"It's just easier to leave them out when I'm bouncing between Woolies, the butcher and the market."

Lack of delivery options and limited brands

One customer who relies on 'direct to boot' and 'click and collect' at Woolworths and Coles said they are also "picky with brands". Aldi stocks some branded items, but focuses on own brands to help customers save.

Others cited a lack of delivery options, which may be improved by their recent partnership with DoorDash.

"I have never lived close enough to one to go out of my way, but have just moved and am now two minute drive away so might have to start giving it a go," one person said.

"I'm happy to get non-perishable items from Aldi but for some reason I won't buy fresh produce from there. Also the stores near me aren't very big so I don't feel like I can do a 'complete' shop," another explained.

"I would shop more at Aldi if it was closer to me and they offered a rewards system (I use Flybuys and I like collecting the Coles rewards and collectibles," said another.

This was a popular theme for those who prefer their groceries to be delivered or made available for pick up.

ACCC reports Coles as having 29 percent of the market share.

"I am an avid click and collect user and rewards point collector, there's just not enough benefit shopping at Aldi aside from lower costs," they said.

"Plus it will never be a wholistic shop, there will always be things that you need to get from somewhere else, brand name things and I also don't think Aldi fruit looks very appetising. I also live across the carpark from a Woolies so its also more convenient!"

"I love the prices at Aldi but I don't tend to shop there because they don't always have everything I need meaning I end up needing to going over to Coles for a top-up shop," one person explained.

Other said it was a lack of rewards incentives that keeps them away from Aldi.

"For me, grocery shopping is one of the most annoying life admin tasks so it's very unlikely that I'm going to commit to two grocery store trips for one shopping list. It's the same reason I buy my bread and meat at Coles even though I know going to my local bakery and butcher would likely be better quality."

Another explained: "I do a 'click and collect' from Woolies for 90 percent of my groceries because it's easiest and I get the rewards points which makes me more willing to spend money there, because I feel like it sort of gives me something back."

Aldi partners with DoorDash

While Aldi's recent partnership with DoorDash does give customers a delivery option, this choice has a delivery fee attached and doesn't include Special Buys. It is also only currently being trialled in Canberra.

Today Money Expert Joel Gibson explained Woolworths and Coles' significantly larger market share can simply be explained by the fact they have "twice as many stores as Aldi, so availability and convenience is a factor".

"Aldi also doesn't deliver and I think home delivery makes up more than 10 percent of Coles and Woolies sales and it's growing fast at about 20 percent a year.

"Aldi doesn't have a rewards program and some people value their points (probably more than we should when you crunch the numbers on what they're really worth).

"But it's also because we're creatures of habit. We have to have this brand of biscuits or that flavour of ice cream."

Although Gibson has found when people try Aldi they're "often surprised to find that some products such as dairy and chocolate and meat are as good if not better. And they're certainly cheaper".

Gibson found customers are often pleasantly surprised at their Aldi experiences.

9News Money Editor Effie Zahos agrees there is a lot to be said for "brand power".

"People are creatures of habit. They like knowing where everything is in their regular store," she said.

"And loyalty programs like Flybuys and Everyday Rewards definitely help keep them coming back. Convenience plays a big part too. Coles and Woolies have more stores, offer online shopping, click-and-collect, and a much bigger range.

"That one-stop-shop factor is a big win, especially for busy people. Sure, Aldi wins on price, but sometimes price takes a backseat to convenience and routine."

9News Money Editor Effie Zahos agrees there is a lot to be said for brand power'.

Aldi has gained a cult following during it's time of operation in Australia, particularly their Special Buys.

Consumer Psychologist, Behaviouralist & Brand Strategist Peter Resanceff explains Aldi's business model is "built on limited product lines, a focus on private label products and a streamlined shopping experience that encourages minimum time spent in-store".

"And while this focus on simplicity, cost-efficiency and good value is very attractive to a certain segment of consumers, the evidence is that the majority still place greater value on the wider product variety, well-known national brands and higher level of customer service offered by Coles & Woolworths."

Choice CEO Ashley de Silva agrees physical availability "makes up something like 50-70 per cent of the purchase decision for which supermarket people go to".

Zahos says the draw of Woolworths and Coles is that they are a 'one stop shop'.

Woolworths accounts for 38 percent of the market.

"That is people just shop at whatever's easiest to get to. Coles and Woolies have loads more stores hence loads more shoppers. The other thing to say is people don't buy the cheapest of what's available for most categories in a supermarket.

"They care about things they put in their mouths or their families mouths. Hence they aim to choose to buy the best they can afford. This might end up being the cheapest option, but it's not what they are aspiring to buy."

Aldi 'just getting started'

An Aldi spokesperson has told 9honey they are "just getting started" when it comes to their place in the Australian market.

"In under 25 years, we've grown our market share to over 10 per cent and built a network of 600 stores.

"Today, we proudly employ more than 17,000 people, support more than 1,000 Australian business partners, and serve millions of Australians every week, and we're just getting started!

"With 88 per cent of the population now living within 20km of an Aldi, and the recent launch of our delivery trial with DoorDash, Aldi has made affordable groceries more accessible than ever.

"We know our position as a challenger in the market has enabled Aussies to get better bang for their buck when they head to the supermarket.

"We've consistently delivered incredible value maintaining a 15-20 per cent price gap, so Aussies can save without compromising on quality.

"Our data shows that over five per cent more Australian households are now shopping at Aldi. That's new customers coming to Aldi for the first time.

On top of that, existing customers are also increasing the frequency of their shops at Aldi. So, for Australians that haven't made the switch to Aldi and are looking to reduce their grocery bill, we say head on into store and give Aldi a go.

"The proof is in the receipt. We won't be beaten on the cost of your weekly shop."

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