AUSTRALIA | A groundbreaking data analysis has revealed the staggering “loyalty tax” that Australian families pay by sticking to a single supermarket.
The report, based on pricing data from the comparison tool Grocerize, directly challenged the value of supermarket loyalty programs and proved that shopping strategically is vastly more profitable for consumers.
The analysis exposed the financial fallacy of loyalty, where the minor rewards offered by points-based systems are dwarfed by the significant, immediate cash savings available by comparing prices.
While a shopper might need to spend AUD 2,000 to earn an AUD 10 voucher through a typical loyalty program, that’s a 0.5 percent saving. Grocerize data showed that the average family user saves 28 percent on their weekly shop by splitting their shopping between Coles and Woolworths.
This “loyalty tax” is the calculated difference between the cost of a typical family’s weekly basket at one store versus the cost of the same basket optimised for the lowest price on every item.
“The data is clear: brand loyalty is the most expensive habit a grocery shopper can have,” said Blake Bennett, founder of Grocerize, the tool that compiled the data.
“Supermarkets have spent decades and billions of dollars cultivating loyalty, but our data shows the real loyalty should be to your own budget. We built Grocerize to show people the raw numbers, proving that the biggest savings don’t come from a points card; they come from information.”
The analysis highlighted that while one store might be cheaper for some items, the other is almost always cheaper for others on the same day. Sticking to one retailer means knowingly overpaying for a significant portion of your basket.
The Grocerize platform works by allowing shoppers to see these discrepancies in real-time, empowering them to:
- Identify the true cost of their basket at both major retailers. Pinpoint which specific items are driving up their bill at their “preferred” store.
- Make an informed choice to switch stores or split their shop for maximum savings.
“We encourage every Australian family to challenge their own habits. Before your next shop, ask yourself: Is my loyalty costing me a fortune? The data shows that for millions of us, the answer is yes.”
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