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The Australian Competition and Consumer Commission (ACCC) conducted an inquiry on the state of competition in the grocery industry in 2008. One of the recommendations of the final report of the inquir

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General report on Australian Supermarket price: Australian Supermarket Prices The Australian Competition and Consumer Commission (ACCC) conducted an inquiry on the state of competition in the grocery industry in 2008. One of the recommendations of the final report of the inquiry was to continue the monthly update of GROCERYchoice website on a wide range of products. ACCC publishes two set of prices; basket price of 500 grocery items and prices of basic staple basket. At ALDI supermarkets, owing to their smaller product range, not all of the 500 products included in the survey can be foun...

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General report on Australian Supermarket price: Australian Supermarket Prices The Australian Competition and Consumer Commission (ACCC) conducted an inquiry on the state of competition in the grocery industry in 2008. One of the recommendations of the final report of the inquiry was to continue the monthly update of GROCERYchoice website on a wide range of products. ACCC publishes two set of prices; basket price of 500 grocery items and prices of basic staple basket. At ALDI supermarkets, owing to their smaller product range, not all of the 500 products included in the survey can be found. To address this, a smaller number of staple products have been selected and are presented as the ‘Basic Staples’ basket. The Basic Staples basket is the only basket that lists an ALDI supermarkets price. The Basic Staples basket includes a range of staple products from the larger grocery basket, including milk, bread, fruit, vegetables and meat. In this case study, data is given for only three States. The data collected are recorded in the file Case2009.xls as follows: Price Price of the Basic Staple Basket Name Name of the supermarket: 1 for Coles/BI-LO, 2 for Woolworths/Safeway, 3 Independents and 4 for ALDI. State State: 1 for New South Wales, 2 for Queensland and 3 for Victoria Location Location of the Supermarket: 1 for metropolitan area of capital city of the State; 2 for other Assignment Tasks: 1. Visually present data for the prices of Basic Staple basket at different supermarkets. Calculate descriptive statistics for the prices of Basic Staple basket at different supermarkets. Comments on the location, shape and variability of those distributions. 2. Visually present data for the prices of Basic Staple basket across three States among the supermarkets. Calculate descriptive statistics for the prices of Basic Staple basket across three States among the supermarkets. Comments on the location, shape and variability of those distributions. 3. Visually present data for the prices of Basic Staple basket of ALDI stores in three states. Calculate descriptive statistics for the prices of Basic Staple basket of ALDI stores in three states. Comments on the location, shape and variability of those distributions. 4. Two larger supermarket chains, Coles and Woolworths, control nearly 70% of the grocery market. During the inquiry it argued that the larger buying power of those chains makes them cheaper than other supermarkets. On the other hand, another group argued that there is no significant difference of grocery prices among supermarkets. Using the data collected, how do you test the claim that there is no significant difference of the average prices for the Basic Staple basket at different supermarkets? What do you find from your analysis? Use appropriate inferential statistical techniques. 5. During the inquiry it was argued that there is a difference in supermarket prices across States due to the different size of the markets in each State, transportation costs and other costs. How do you test that there is a significant difference of average prices across three States? Use appropriate inferential statistical techniques. 6. During the inquiry it was argued that there are differences in supermarket prices at different locations. How do you test that there is a significant difference of average prices at different locations for Woolworth supermarkets? Use appropriate inferential statistical techniques. 7. ALDI claims that they have a national pricing policy; the policy excludes fresh fruit, vegetables and regional bakery lines. How do you test whether there is significant difference of average prices of ALDI stores in three states? Use appropriate inferential statistical techniques.

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In this business report we are comparing the prices of the basic staples basket of the four supermarkets across three states of Australia namely New South Wales, Queensland and Victoria. The average prices of the basic staples basket is to be calculated across the various supermarkets in Australia as there have been different claims that they are all equal across the supermarkets, across the states, across the locations and also that Aldi prices are lower than that of other supermarkets in three states

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