Supermarket Pricing Confusion: Per-Unit Costs Leave Shoppers Paying More
Under current regulations, major supermarkets in Australia have the flexibility to price fruit and vegetables either per unit or per kilogram, regardless of whether the items are packaged or sold loose. This practice is causing significant confusion among shoppers, who often struggle to compare prices effectively.
Bitter Taste: Per-Unit Pricing Leaves Customers Out of Pocket
Consumer advocates are calling for greater transparency as Woolworths, Coles, and Aldi increasingly adopt per-unit pricing without consistently displaying per-kilogram equivalents. For instance, at a Woolworths store, a bunch of five "kids' bananas" was priced at $3.70 per bunch, appearing similar to loose cavendish bananas at $3.50 per kilogram. However, when a Guardian reader weighed the kids' bananas at 530 grams, the per-kilogram cost calculated to $6.98—a staggering 99% increase for smaller pieces of the same fruit.
Guardian Australia has examined numerous examples of this confusing and seemingly arbitrary pricing strategy, which supermarkets are expanding, making it extremely challenging for consumers to make informed purchasing decisions.
Confusing Pricing Conceals Wild Variations
Because supermarkets are not mandated to show a per-kilogram price or even the average weight of items, shoppers are often left in the dark about whether they are getting a good deal when paying a fixed price per item. In another test by the same Guardian reader at Woolworths, Lebanese cucumbers were priced at $4.90 per kilogram, while continental cucumbers were sold at $2.50 each. Although the continental variety might seem cheaper due to its larger size, weighing one at 340 grams revealed a per-kilogram cost of $7.35—50% more than the Lebanese cucumbers.
A Woolworths spokesperson defended their approach, stating that pricing is "clearly communicated to allow our customers to make informed choices when it comes to their purchases."
Random Nature of Unit Pricing on Display
In stores, Woolworths, Coles, and Aldi have all been expanding their use of per-unit pricing, frequently omitting per-kilogram displays. Coles has acknowledged trialling an expansion of this practice, but a visit to a Melbourne store this week showed over half of fresh produce priced per item in what appeared to be a random manner. Items like cauliflowers at $5 each were placed next to broccoli at $8 per kilogram, with many other products, including silver beet, kale, and various fruits, also sold per unit.
Coles explained that the mix of pricing methods aims to make shopping easier, with a spokesperson saying, "Many items are commonly selected as individual pieces, and per-unit pricing makes it easier for customers to quickly choose the number of items they need." They added that their goal is to "balance transparency with simplicity, so customers can easily understand prices and shop in the way that suits them best."
At Aldi, similar inconsistencies were observed, such as rock melons priced at $4.99 each next to watermelons at $1.99 per kilogram. Aldi declined to comment on their pricing strategy.
Even More Inconsistencies Shopping Online
Guardian Australia recently reported that the shift to per-unit pricing by major supermarkets is leading to "wild volatility" in costs, with some items becoming over 50% more expensive. When shopping online, Coles and Aldi display approximate per-unit prices alongside average weights and per-kilogram costs, adjusting final prices based on actual weight. In contrast, Woolworths fixes prices per item online regardless of weight, which can disadvantage customers.
Dario Bulfone, operations manager at Aumanns greengrocer in Warrandyte, Melbourne, emphasized that it is "not complicated at all" to use average weights and adjust prices accordingly. He argued that not doing so creates confusion and systematically disadvantages shoppers, stating, "The technology already exists. The systems already exist. Choosing not to do it is not a technical limitation. It’s a decision."
A Woolworths spokesperson mentioned they are "investigating additional system capability" for online customers who might prefer a pricing approach similar to in-store methods.
Calls for Regulatory Change
Consumer advocates are urging supermarkets to be required to consistently display and charge fresh produce prices per kilogram, both in stores and online, with any per-unit prices being estimates only. When asked about supporting such a mandate, Assistant Competition Minister Andrew Leigh did not provide a direct answer, instead highlighting the government's commitment to strengthening other pricing rules for clearer information. No reforms to per-unit pricing have been announced yet.
