Australian Supermarkets' Per-Item Produce Pricing Creates Price Volatility and Transparency Issues

Supermarkets are increasingly charging customers for fresh produce by the item instead of by weight, a strategy that has led to price variations, according to new analysis. A Sydney-based data analyst found "wild volatility" in pricing, with some items being more expensive when priced individually.\n\n## Analysis Findings\nThe analyst compared online 'per each' prices with in-store 'per kilo' shelf prices for 15 fruits and vegetables at a local Woolworths store. The findings indicated that price variations were "completely arbitrary." The analyst, who requested anonymity due to employment, characterized the pricing strategy as a "massive transparency failure" for consumers.\n\n## Supermarket Practices\nWoolworths primarily uses weight-based pricing for most in-store fresh produce, with exceptions like avocados and mangoes. However, for online grocery sales, fresh produce items are priced individually. Coles has initiated a trial to expand per-item pricing for fresh produce in some stores, stating this move is intended to provide "clarity on exactly what you will pay at the checkout."\n\n## Consumer Transparency Concerns\nCurrent regulations do not require supermarkets to display a per-kilo price or the average weight of items when produce is sold individually. This makes it difficult for shoppers to assess if they are receiving value for money when paying a set price per item. The analyst's study aimed to determine the fairness of the shift to per-item pricing, concluding that current regulations warrant review.\n\n## Pricing Discrepancies\nThe analysis highlighted instances where 'per each' pricing resulted in significant cost differences. For example, green capsicums were priced 51% higher when sold individually online compared to their weight-based price in-store. This meant an effective price of nearly $15/kg online for a vegetable available at $9.90/kg in-store.\n\n* More Expensive Per-Item: Red washed potatoes (30% more expensive), mandarins, limes, and carrots.\n* Cheaper Per-Item: Broccoli (43% cheaper), brown and red onions (brown onions 39% cheaper), red chillis, red capsicums, black plums, apricots, bananas, and truss tomatoes.\n\nThe effective per-kilo price for individual items was calculated by dividing the online item price by the average weight of items measured in-store.\n\n## Regulatory and Advocacy Responses\nThe existing rules allow major supermarkets to price fruit and vegetables 'per each' or 'per kilo' regardless of packaging. The analyst identified this as a "loophole" that hinders consumers' ability to make informed purchasing decisions and raised concerns about potential "shrinkflation" if retailers source smaller produce while maintaining the same individual price.\n\nIan Jarratt of the Queensland Consumers Association advocated for amendments to trade measurement legislation and the unit pricing code to limit or remove retailers' ability to price produce solely per piece. He suggested that prices should primarily be shown and charged per kilo, with estimated per-piece prices as supplementary information.\n\nThe Australian Competition and Consumer Commission (ACCC) acknowledges the potential for improving unit pricing consistency, as noted in its supermarkets inquiry report. However, the current unit pricing code's recommendation for displaying unit pricing (average weight and per-kilogram price) for 'per each' items is a suggestion, not mandatory. Bea Sherwood, a senior policy adviser at Choice, also supported consistent per-kilo pricing as a baseline for consumer price comparisons.\n\n## Supermarket Statements\nA Woolworths spokesperson stated that online customers often seek a specific number of produce pieces, and per-item pricing facilitates this. They acknowledged potential "small discrepancies" between per-piece online prices and in-store per-kilo pricing but confirmed no current plans to alter in-store pricing methods.\n\nA Coles spokesperson explained that their trial of per-unit apple pricing, similar to lemons and limes, is to assess if it simplifies the shopping experience, and feedback is being collected.\n\nThe Albanese government has committed to strengthening aspects of the unit pricing code but has not announced specific reforms regarding 'per each' pricing. Assistant competition minister Andrew Leigh commented that "supermarket prices shouldn’t be a guessing game."