A new investigation has revealed that major Australian supermarket chains are increasingly charging customers for fresh produce by the individual item rather than by weight, leading to “wild volatility” in pricing and potentially costing shoppers significantly more.
The analysis, conducted by a Sydney-based data analyst who compared the “per each” online prices with the actual “per kilo” shelf prices of 15 fruits and vegetables at a local Woolworths store, found the price variations to be “completely arbitrary.” In one striking example, the so-called “capsicum paradox,” Woolworths charged 51% more for green capsicums when priced individually compared to when they were priced by weight.
Unless customers perform complex calculations on the spot, they are unlikely to know if they are being “ripped off” by the “per each” pricing, the analysis found. In some cases, items were more than 50% more expensive when priced per piece rather than per kilogram.
The findings have prompted calls for regulatory changes to address what consumer advocates describe as a “massive transparency failure” for shoppers. Ian Jarratt from the Queensland Consumers Association said the trade measurement legislation and unit pricing code should be amended to “reduce, or remove, the ability of retailers to price fruit and vegetables only per piece.”
Woolworths defended the practice, stating that customers are generally looking to order a specific number of produce items, especially when shopping online. However, a spokesperson acknowledged that there may sometimes be “small discrepancies” when comparing per-piece to in-store per-kilo pricing.
Coles, which has been trialling an expansion of per-each pricing for fresh produce in some stores, said the trial is aimed at understanding whether this approach makes shopping easier for customers. The company said it welcomes feedback on the initiative.
The Australian Competition and Consumer Commission has acknowledged that there is “scope to improve unit pricing” in the supermarket sector, but current regulations only recommend, rather than mandate, the display of both per-piece and per-kilogram pricing. Consumer advocates argue that consistent per-kilogram pricing should be the baseline to enable shoppers to make informed decisions.
