Costco vs Coles: An Adelaide Woman’s Surprising Grocery Price Comparison
In a recent analysis, Adelaide resident Ri Springbett compared grocery prices between Costco and Coles, revealing notable price discrepancies. The American wholesale giant Costco is becoming increasingly popular in Australia, with its store count reaching 15 across the nation.
Membership Considerations
Springbett, a Costco member for five years and paying an annual fee of $65, was prompted to evaluate whether the membership was still advantageous for her smaller family. With a family of three, she questioned the practicality of bulk buying and sought to find out if shopping at Costco was genuinely more cost-effective than her usual shopping experiences at Coles.
“Costco is known for its bulk-buy and bulk discounts. But as a family of three, I wondered if it’s really beneficial for me,” she shared.
Price Findings
After her price comparison, Springbett expressed astonishment at the results, noting that certain items were 40 to 50 per cent cheaper at Costco. It’s worth mentioning that Costco primarily offers its own branded products, making direct comparisons challenging. She had to select similar products from Coles for her analysis.
For instance, Australian minced meat was £10.99 per kilogram at Costco, compared to £20 at Coles. However, this was based on purchasing a 3.920kg pack from Costco, while Coles sells it in 500g packs. Additionally, free-range eggs were priced at £0.67 per 100 grams at Costco (30-pack) compared to £0.94 at Coles (12-pack). Other items included TipTop bread at £3.69 per loaf at Costco versus £4.50 at Coles, and a whole roast chicken available for £7.99 at Costco compared to £12.50 at Coles.
Impact on Shopping Habits
While the comparison focused on a limited selection of products, Springbett’s revelations prompted her to rethink the value of her Costco membership. “From those few items, I’m saving a significant amount by purchasing the things we already use at home,” she noted.
A CHOICE analysis conducted in June 2022 backed this up, finding that of 23 bulk items checked against Coles and Woolworths, Costco had the lowest unit price in 19 instances.
As grocery costs hit a record high in June, averaging £233 per week per household (a 27 per cent increase from the previous year), many consumers, like Springbett, are seeking methods to cut costs.
Consumer Insights
Finder money expert Rebecca Pike highlighted that Costco’s appeal primarily lies in its lower unit prices for larger quantities. "It’s particularly advantageous for larger households or for items with longer shelf lives," Pike noted. However, she advised consumers to conduct thorough research to ensure that bulk buying is practical for their circumstances and that they derive enough savings to justify the membership fee.
Springbett reinforced this notion, stating that the savings on groceries, alongside lower petrol prices at Costco’s fuel station, made the membership worthwhile for her.
Shopping Strategies
Springbett’s shopping strategy involves visiting Coles weekly, spending between £100 and £120, followed by Costco visits every few months at approximately £200 per trip. She strategically selects bulk items that her family uses frequently, such as school snacks, frozen fruits and vegetables, and loaves of bread.
Recognising the temptation to overspend at Costco, Springbett advised prospective shoppers to stay focused and maintain a shopping list to avoid indulging in unnecessary purchases during visits. "Everything looks shiny and exciting. You can easily overspend," she cautioned.
Conclusion
As the landscape of grocery shopping evolves, many consumers are exploring different options like Costco to maximise savings. Springbett’s experience underscores the importance of evaluating one’s shopping needs and habits to effectively leverage bulk buying benefits while being wary of potential pitfalls.
With growing food costs, consumers keen on budgeting will likely continue examining various grocery providers to make informed purchasing decisions.
