The bleak supermarket shift proving Aussie household budgets have hit breaking point

Shoppers are increasingly ditching “treat” foods like chips and chocolate as cost-of-living pressures force a hard look at supermarket receipts, according to new data from consumer group Canstar.

Two-fifths (40 per cent) of Australians surveyed confirmed they have cut back on discretionary snacks. Rather than a health push, it represents a calculation: cutting non-essential treats provides a quick, painless way to lower the total at the checkout without sacrificing meal nutrition.

It’s part of a wider revolution playing out in supermarkets around the country.

An overwhelming 81 per cent of shoppers say they have altered their grocery habits over the past 12 months, with 38 per cent strictly comparing unit prices, 30 per cent hunting for yellow-stickered markdowns, and a quarter pivoting directly to home-brand lines.

The shift comes as weekly family food bills reach record highs.

The average spend for a family of four now sits at $245 a week, up from $240 last year, and a massive jump from the $187 a week recorded five years ago.

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“Canstar’s research reveals the reality of the cost pressures facing so many households, but also how savvy they have become when it comes to stretching every grocery dollar,” says Canstar consumer expert Eden Radford.

“While shelf prices might be climbing, shoppers are getting smarter about how they fill up their basket, applying tactics to help combat the cost increases.”

Chief among those tactics is the death of brand and store loyalty.

Almost half of Australians now visit two different stores on their routine grocery run, while 18 per cent visit three or more, often pairing a discount run at Aldi with weekly specials at Coles or Woolworths.

Even the traditional stigma around "generic" store brands has vanished. As major grocers upgrade the quality and packaging of their private-label ranges, shoppers are embracing them as a smart hack rather than a downgrade.

The latest sales figures show home-brand revenue jumping 6.1 per cent at Coles and 5.5 per cent at Woolworths.

Meanwhile, high-margin “fun” categories are also feeling the squeeze. Beyond the snack aisle, discretionary spending on alcohol has collapsed.

Coles reported a 3.3 per cent drop in liquor sales alongside a staggering 48 per cent plunge in liquor earnings, proving non-essential indulgences are the first to be left off the shopping list.

Between shrinking packet sizes, rising checkout totals, and ongoing scrutiny into supermarket pricing practices, Australians are rewriting their shopping lists – and for now, chips and chocolate simply aren’t making the cut.