Coles and Costco price comparison 'shocks' Aussie mum: 'Significant amount'

Yahoo

3 days ago

An Adelaide woman has shared her surprise after comparing the price of grocery items at Costco and Coles to see which one was cheaper based on unit prices. American bulk-goods chain Costco has been growing in popularity in Australia, with 15 stores now dotted around the country.
Ri Springbett has been a Costco member for the last five years, paying $65 a year to shop there. The 37-year-old told Yahoo Finance she was curious to see if her membership was still worth it for her smaller family and decided to do a price comparison against Coles, where she does her weekly grocery shop.
'Costco is known for its bulk-buy and bulk discounts, but as a family of three, I thought, is this really beneficial for me to actually be a member to be shopping here?' she said.
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Springbett said she was 'shocked' by the difference and found some items were 40 to 50 per cent cheaper at Costco. However, she noted that Costco-branded products dominated its offering, so she had to compare similar products offered by Coles instead of like-for-like.
Australian mince meat, for example, worked out to be $10.99 a kilogram at Costco, compared to $20 per kilogram at Coles. However, this was based on buying 3.920kg of mince at Costco, with the comparable Coles item available in a 500g pack.
Free range eggs were $0.67 per 100 grams at Costco based on a 30 pack, compared to $0.94 per 100 grams at Coles based on its 12 pack.
TipTop bread was $3.69 a loaf at Costco, compared to $4.50 a loaf at Coles. A whole roast chicken was $7.99 at Costco, compared to $12.50 at Coles.
Springbett only compared a relatively small range of products, but she said she "cannot believe" what she discovered, and it was enough for her to change her mind about the value of her membership.
'From those few things, I'm actually saving a significant amount by purchasing the items that we're already using at home or items like coffee, cheese and mince,' she said.
A CHOICE comparison conducted in June last year found that of the 23 bulk items it spotchecked against similar items at Coles and Woolworths, Costco had the cheapest unit price 19 times.
Aussies urged to compare prices as grocery spending hits record high
Grocery spending reached a record high in June this year, according to Finder, with the average household spending $233 per week. That was up 27 per cent per week from June, 2024.
Like Springbett, millions of people are looking for ways to save on their groceries, with around a third now shopping at multiple stores to find the best deal.
Finder money expert Rebecca Pike told Yahoo Finance Costco's primary appeal was offering lower unit prices on items sold in larger quantities.
'Costco's bulk-buying model can offer significant value on certain items, particularly for larger households or those willing to stock up on non-perishables,' she said.
However, she said it was still worth doing your own research.
'It's also important to remember that not every item will be the cheapest, so you should really be clear on how much the unit price is at your local supermarket so you can compare,' she said.
Bulk buying also won't be practical or possible for every household, including smaller households, those with limited storage space and those who don't have the upfront cash to bulk buy.
'It's essential for consumers to be savvy. You should be really certain that you can recoup the membership fee through savings from your bulk buying, and that includes having the means and the space to do so,' Pike said.
'If you don't shop there regularly, or don't buy enough to offset the fee, it might not be worthwhile.'
Costco membership worth it for Aussie mum
Springbett said the grocery savings, along with the savings she gets from her and her husband filling up their cars at the Costco fuel station, made a membership worth it for her.
'It has definitely changed my perception a little bit on Costco. I can see that value more clearly now, but also I will be inclined to purchase more things in bulk,' she told Yahoo Finance.
Costco allows members to bring up to two guests and Springbett said she often takes friends and family members to help add more value.
Springbett usually shops at Coles weekly and spends between $100 and $120 for her family of three. She then shops at Costco every few months and spends about $200 each trip.
She said the biggest items she likes to buy at Costco are school snacks for her son, fruit and vegetables, which can be frozen, and loaves of bread that can be frozen.
Springbett said she was very 'strategic' with her Costco shop and made sure she wrote out a list and stuck to it.
'You can get distracted. You can go in and everything looks shiny and exciting … You can end up walking out spending $500 easily,' she said.
'The excitement of Costco is quite appealing, but that doesn't benefit you in any way if you're spending double the amount you intended to."