10 tips and tricks to save money at the supermarket

Shopping is an essential part of everyday life for most Australians, but with inflation biting and grocery bills rising, extracting the most value from these essential purchases can make all the difference to your budget’s bottom line.

It’s a tough time for Aussie households. Many homeowners are struggling to meet mortgage repayments, while renters face record low vacancy rates and pricey leases. Energy prices are expected to increase during winter, exacerbating already challenging inflationary pressures. Yet, there are ways to realise extra value.  

We've compiled a list of 10 useful tips and strategies that could help unlock supermarket savings and other benefits.

1. Use the scanning code for free items (when applicable)

Many shoppers are unfamiliar with the scanning code of practice. It was introduced by the Australian Supermarket Institute (ASI) in 1992. The code states that if an item scans at a price higher than what's marked on the shelf or in a valid advertisement, the customer receives the initial item for free and all subsequent same items at the lower price.

The scanning policy is a voluntary code that major retailers Woolworths, Coles and ALDI have all signed up to. Some IGA stores have also agreed to adhere to the code, although some haven't, given the brand's independent nature.

With the code in mind, it’s important to check ticketed prices, including specials, as you shop - and to be aware of what price they’re scanning at when you go through the checkout. Don’t be afraid to politely request the assistance of a manager if the attendant serving you isn’t aware of this practice. You could also refer them to the supermarket's scanning policy on their website by following the appropriate links in the paragraph above.

Alcohol and tobacco are exempt from the rule, in that you won't get the items for free but you will receive them for the correct price. Additionally, any items valued over $50 are also non-applicable and unfortunately won't be offered free.

If you’re travelling abroad it’s also worth keeping this code in mind, as many overseas retailers often have a similar scanning policy. For example, the Retail Council of Canada enforces the Scanner Price Accuracy Code.

2. Utilise AI to repurpose leftovers and loose ingredients

The popularity of artificial intelligence (AI) has exploded in recent years. One of the most significant developments in this field is the proliferation of AI chatbots. To find out exactly what these chatbots can do, I asked ChatGPT - an AI language model developed by research lab OpenAI - to provide a definition. Here's how it replied:

AI chatbots can be implemented on various platforms such as websites, messaging apps, and voice assistants. You could use a chatbot to assist you in planning meals, discovering new recipes and deciding what to make with loose ingredients and leftovers in your fridge and pantry. There are many models but one of the most popular is ChatGPT.

These virtual assistants can save you time, research, money and help to reduce waste. Chatbots have access to endless amounts of information, so they’ll often be able to come up with unique ideas and suggestions that you might not necessarily consider. Plus, if you don’t like the response or want to amend or alter your request, because they’re conversational in nature, chatbots can recall what’s already been discussed and provide more alternatives.

As is the case with most technologies, these programs aren't flawless and have been known to make errors. If you or the people you're cooking for have allergies or dietary restrictions, it's sensible to double-check any proposals.

3. Buy imperfect produce and save

A number of supermarkets across Australia sell fresh fruit and vegetables that don’t meet the typically high visual standards customers have come to expect. These products may be oddly shaped or unusually sized but are perfectly edible and equally fresh as anything else that’s for sale. They're generally pre-packaged and in the produce section. 

For example, Woolworths stock The Odd Bunch, professing savings of at least 20% compared to their standard produce prices. Coles have the I’m Perfect range, helping to reduce farmer’s wastage and support local producers. Harris Farm Markets sell Imperfect Picks, offering seasonal produce up to 50% cheaper than similar items for sale.

4. Compare unit prices and be wary of ornate ticketing

Most supermarkets actually do all the hard work of price breakdowns for their customers, yet not all shoppers are aware of these details. If you examine the standard shelf ticket of almost any item you’ll notice that it will display the product name, sale price, quantity and unit price.

The unit price shows how much the product costs using a standard unit of measurement. The measurement used will depend on the type of product you’re buying. Units may be displayed by weight, volume, length, area or number.

While an item may seem cheaper when comparing sale prices, this may not necessarily be the case. You can save significant sums simply by checking the unit price.

Additionally, don’t be fooled by some of the tickets supermarkets use to attract buyers. While there are tickets that promote genuine specials and discounts, others only promote new items or everyday low prices (see image below). 

Read the fine print and examine any tickets carefully before making your purchases. Don’t just assume that because it’s ticketed, it’s cheaper. There may be similar items that aren't on special offering greater savings.

5. Take advantage of loyalty programs

Sign up for supermarket loyalty programs to earn points and receive discounts. You can also take advantage of special promotions and personalised offers. Most supermarket chains offer customer loyalty programs for free. 

Some supermarkets issue store-branded credit cards, allowing you to earn and redeem points when shopping.

Most major supermarket loyalty programs are now available as apps that can track your shopping habits, create lists, present personalised discounts, propose recipe suggestions, and arrange home delivery or parcel pickup.

6. Buy in bulk where you can

While it may not always be feasible, as you may have budget limitations or space constraints, it can be advantageous to buy larger size items, as they’re often cheaper.

The reason? It offers customers an incentive to spend more because you’re buying more. If you can make a larger quantity last as long - or longer - as when you buy smaller quantities, it can be a worthwhile strategy. However, some people (this writer included) may get through food faster when there’s an excess available.

Conversely the opposite can be true, as is highlighted in the Seinfeld clip below. Upon inspecting his neighbour Cosmo Kramer’s colossal grocery haul, Jerry desperately declares, “You will never be able to finish all this stuff!”

Still... 10 pounds of cocktail meatballs for US$17.50 is a bargain, even today! 10lbs is roughly 4.5kgs. Adjusting for inflation since 1996, when this episode aired, the total cost works out to around AU$10.50/kg. IKEA charge $20/kg.

There are specific retailers that sell predominantly wholesale or bulk items, typically at reduced prices. In Australia, these include shops such as ALDI and Costco. If you shop the specials, compare prices and purchase only things you need you can score significant savings. Be aware that Costco requires all customers to pay for membership. 

7. Shop (near and far) for seasonal produce 

Seasonal fruits and vegetables are often cheaper and fresher. Plan your meals around what's in season to save on grocery bills. Check the Seasonal Food Guide Australia to discover when specific produce is in season. You can filter your search by state capital to get a clearer idea of what’s available and find details on local farmer’s markets.

You might also benefit by shopping further afield. It's easy to opt for convenience when buying groceries, however, if you're willing and able to leave your local area, you may discover different deals and cheaper produce. Try travelling to green grocers and wholesale fruit and veg markets in other suburbs to hunt for bargains.

If you're keen for extra savings, don't just stop at fresh produce when exploring other parts of your city or region. There's wholesale meat, fish and poultry vendors; specialised butchers (e.g halal and kosher); frozen food emporiums; delicatessans; and international supermarkets selling unqiue produce, herbs, spices and long life items.

8. Plan out your meals

Create a weekly or fortnightly meal plan and form your shopping list based on the necessary ingredients. This approach can reduce impulse purchases and ensure that you buy only what you need. Plus, you’ll know what delicious things you’ll be eating ahead of time, providing some workday motivation. If you’re unsure of what to cook or are lacking recipe ideas, you can have an AI chatbot - such as ChatGPT - do all the research and hard work for you.

I gave ChatGPT a mildly complicated request and the response was quick and helpful. Check out the example below:

9. Shop with a full stomach

Avoid shopping when you're hungry as it can lead to impulsive purchases and unnecessary spending.

10. Consider generic or store-branded products

Oftentimes supermarkets will carry their own line of grocery items. Since profit margins are generally higher on these products, they can afford to be sold at lower costs. For example, when you see the Woolworths logo on products this indicates that it’s part of The Woolworth’s Range - a collection of over 2,000 store-branded products. Coles have a similar branded offering, while ALDI mostly stocks Australian-made products from exclusive brands.

There are frequent debates online discussing the quality of store-branded products versus other companies' lines, so your decision may be influenced by your own brand and taste preferences or, perhaps, your desire for savings.

Bonus ideas to save money on your next shop

• Avoid pre-packaged convenience items: Pre-cut fruits, vegetables, and packaged meals tend to be more expensive. Buy whole produce and prepare meals at home to save money and enjoy fresher ingredients.
• Repurpose food that’s expiring: Have you got bananas that are going black? Why not make a smoothie. Overripe raspberries, blackberries, blueberries or strawberries? Stir up some jam. Cucumbers, radishes or fennel past their prime? Pop em’ in a brine to pickle. Just make sure to have plenty of sugar and vinegar on hand.
• Avoid wastage: Reduce food waste by properly storing perishable items and using leftovers creatively. Consider using the "first in, first out" approach when organising your fridge to prioritise consuming older items.
• Vacuum seal your meat: If you happen to shop at a local butcher, you can ask them to portion and vacuum seal your protein purchases so they last longer prior to use. You can do this yourself too, although it may not be as effective as a vacuum seal. Use freezer bags or containers to tightly pack meat you’ve bought from the supermarket.

Remember, implementing a combination of these tips can potenitally lead to significant savings over time.

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