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COST OF LIVING

Grocery shopping in Austria: How much could you save by switching chains?

With food prices rising in Austria the weekly grocery shopping bill has become more of a burden on households but is there anything to be saved by switching chains? David Everson-Baltas crunched the numbers.

Published: 25 September 2023 14:51 CEST
Updated: 2 October 2023 09:13 CEST
Bread rolls
A selection of bread rolls. Photo: Manfred Richter from Pixabay

All over the world, people are having to deal with what seems like a barrage of unending economic uncertainty and soaring prices, but Austria in particular has been grappling with some of the highest inflation rates in Europe.

Quite understandably, our initial reaction to out-of-control price hikes tends to focus on one thing: earning more money. But in our efforts to manage our money more diligently, we often forget that our choices as consumers can have just as significant an impact on our bank balances.

Where you shop for groceries is one such choice, and with inflation pushing up food prices by as much as 30 percent, you can make regular and sizeable savings simply by being more selective in where you shop.

Since the beginning of 2023, after seeing a pack of tri-colour peppers at an eye-watering €3.99, I have been making a concerted effort to reduce my household food expenses by thinking more carefully about where I shop, and in doing so have made some considerable savings.

To help you make more informed shopping decisions, I have recently conducted a price comparison of essential food shops across three major supermarket chains in Austria.

READ ALSO: Everything you need to know about supermarkets in Austria

The three supermarkets:

As a resident of Austria, you will likely be familiar with the market chains: Spar, Billa and Hofer.  Outlets for all three companies can be found throughout Austria, yet they differ substantially in their prices and respective reputations for variety, quality, and promotional offers.

Spar: Der österreichische Supermarkt in Ihrer Nähe! (The Austrian supermarket near you)

With over 1,500 locations across the country, Spar is central to the Austrian food shop. Whether you’re in Vienna, Vorarlberg, or an out-of-the-way mountain village, the chances are there is, indeed, a spar store “near you”.

Tomatoes

Image by M. from Pixabay.

Particularly in the case of its larger INTERSPAR stores, the Dutch supermarket chain offers a much wider choice of products compared to Billa and Hofer, and with the introduction of its new app, shoppers can now get immediate access to a limited number of 25 percent off discounts for their most expensive items.

Billa: A portmanteau of “billiger Laden” (cheap shop)

Billa, with over 1,000 outlets in Austria, has been serving Austrians since 1953, offering a diverse range of products to meet their daily requirements. The chain often includes 25 percent off discount stickers in their mail-marketing brochures, so shoppers can enjoy regular savings on their most expensive purchases.

This, coupled with its loyalty card scheme JÖ, makes it a popular choice for those who like big promotions and exclusive offers.

Hofer: Da bin ich mir sicher (I’m sure)

Hofer, known in some parts of the world as Aldi, has revolutionized the food shopping experience with its commitment to affordability. With over 500 locations across Austria, Hofer has become synonymous with budget-friendly shopping. This discount supermarket offers no-frills shopping, focusing on the essentials with an albeit smaller range of products.

The results:

Having compiled a shopping list of general food staples and essentials, I took to the shops to see which would cause the least amount of damage to my budget. It should be noted that the products across Spar, Billa and Hofer are often from independent producers and don’t always share the same brand, so in order to maintain a fair comparison, items were compared according to quality and price level i.e., store brand bio products were always compared with other store brand bio products, as were budget brand items.

Below is the list of items that were compared across the three stores:

*Onions (1kg)

Peppers (x1)

Midi vine tomatoes (1kg)

Potatoes (1kg),

Bananas (1kg)

Apples (1kg)

*Eggs (10x L)

Butter (250g)

Full-fat Milk (1l)

Chicken (1kg)

*Olive oil (750ml)

Flour (1kg)

Sugar (1kg)

Bread roll (Kaisersemmel x1)

*Sausages (240g)

Cheese (175g)

*Adjustments in price were made to items sold in different weights or quantities.

The total bill for each shop came to:

Spar: €76,06

Billa: €76,86

Hofer: €67,79

So, there you have it. Of the three, Hofer emerges as the more economical choice with prices over 10 percent cheaper on average than those of its rivals.

But as you’ll by now be aware, each shop has its own benefits and drawbacks, and price alone might not be the sole determinant for where you decide to shop.

Which Austrian chain is best to shop in?

Image by Alexa from Pixabay

Things to consider:

No single shop provides everything: It’s crucial to note that the above comparison does not factor in the various promotional offers and discount schemes unique to each store, nor does it account for our individual tastes in choice and quality. To maximise your savings, I encourage you to take full advantage of Billa and Spar’s 25 percent off stickers, using them for items not available at Hofer or when they offer a better deal.

READ ALSO: Where to find international food in Austria 

Distance: Living in Vienna, I am fortunate enough to have all three stores within walking distance of my home, though I understand this to be the exception rather than the rule. That being said, with Hofer being the farthest of the three, I’m still forced to give up more of my time in order to benefit from the lower costs. The optimists among you may, however, join me in viewing this longer trek to the shop as an opportunity for exercise. Consider your new trip to Hofer as a means of improving both your physical and financial health.

Quality: Having shopped at all three chains for more than five years, I’ve found no substantial differences in the quality of their products, especially when it comes to essential food items. Given the significantly lower prices Hofer has to offer, any shopper who prefers Billa and Spar products may still be inclined to overlook certain drops in quality in order to save money.

Keep up-to-date: To aid consumers in battling rising food prices, the ÖVP Minister of Economic Affairs Martin Kocher has proposed a law mandating all major supermarkets to publish their food prices on comparison platforms. While they don’t yet provide a fully comprehensive list of every store’s pricing, you can compare many of your shopping list items already at https://www.supermarkt.at/.

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For members

ECONOMY

Why is Austria’s economy faring so badly compared to the rest of the EU?

Of the 15 countries that joined the EU before 2004, Austria had the lowest growth and highest inflation between 2019 and 2023.

Published: 3 July 2024 14:30 CEST
Why is Austria's economy faring so badly compared to the rest of the EU?

According to calculations by the liberal think tank Agenda Austria, Austria’s economy has not been performing well compared with other EU countries.

Of the 15 countries that joined the EU before 2004, Austria had the lowest growth and highest inflation between 2019 and 2023. While life became around 22 percentage points more expensive, real gross domestic product per capita (GDP) shrank by 1.6 percentage points in the same period.

Some of Austria’s neighbours, such as Germany, also saw high inflation, but prices rose 19.3 percent with the gross domestic product (GDP) per capita decreasing by 0.9 percent from 2019 to 2023. Italy, on the other hand, saw a 17.2 percent price increase but its GDP rose by 4.8 percent over the same period.

So why are things so much worse for people in Austria than elsewhere?

‘Partly home-made’

According to Jan Kluge an economist with Agenda Austria the answer is multifactorial. 

Luge says that Austria’s inflation has skyrocketed compared to its neighbours, particularly as the federal government spent money with aid programs during the coronavirus and inflation crisis. 

“The high inflation is therefore partly homemade”, he told Kurier.

This aid was also afforded to companies that were not financially sound.

“We have created zombie companies. In other countries, companies were allowed to go bust during the pandemic. We dragged ailing companies along with us and are still doing so today,” Kluge said.

READ ALSO: Can my landlord in Austria increase the rent whenever they want?

Following a sharp decline in insolvencies during the pandemic, Austria is now experiencing massive bankruptcies. Creditforum estimates that 7,500 companies will go bankrupt this year. 

Kluge attributes this – in addition to the rise in interest rates, high energy costs and strict regulations – to inadequate aid money. “Insolvencies are now slowly catching up because many have finally run out of steam”, he said.

According to Kluge, Austria’s weak performance is even more worrying when compared globally.

This is because the performance European economic area had already deteriorated compared to the USA during the 2008 financial crisis. In other words, Austria is weakening within an EU that is also under performing.

What can be done?

Liberal think tank Agenda Austria, which says its focus is on “market-based solutions”, has a list of “recommendations” for the Austrian economy, although they might not all go down well with workers or unions.

They start by calling for an end to “election sweets”, as they call them.

This means politicians should “stop handing out election gifts”, as any populist measure and handout contributes to rising prices.

“Popular interventions in prices are also strongly discouraged. Prices have an important function. Switching them off does not combat inflation; it only hides it. And only in the best-case scenario”, the think tank said.

They also recommend that the government “get a grip on the spending spree,” suggesting the adoption of a spending brake model based on Swedish or Swiss tools. 

READ ALSO: What is the ‘friendship economy’ in Austria and how does it work?

Additionally, Agenda Austria advocates for reducing labour costs which would continue to boost prices in Austria. They pointed out that tough wage negotiations led to increases in salaries in 2024.

They suggested: “To counteract this, the government can lower taxes on labour, thus reducing the increase in labour costs and counteracting a wage-price spiral.”

Finally, the liberal think tank also recommends that the government promote lively competition, increase supply, and ” let the market work.” They also mention that consumers can benefit from a range of products “from abroad,” even if domestic ones “naturally give us the best quality in every situation.”

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