Costco is Australia’s favourite grocery brand, according to OC&C Strategy Consultant’s 2025 Retail Proposition Index (RPI).

OC&C’s RPI asked 5078 Australian shoppers for their attitudes towards 100 retailers, with whom they had shopped with in the previous three months, split across 16 categories. Now in its fifth year, the RPI shows that shoppers reward retailers based on trust, clarity of proposition and perceived value for money.

Neither of Australia’s national supermarkets have appeared in the overall top 10 since the height of the pandemic. In the grocery category, surveyed shoppers report Coles and Woolworths unfavourably compared to leader Costco (fourth place overall), scoring them worse value for money (-18 and -14 points respectively), less fun to shop (both -19), and that they feel less pride in shopping with the dominant grocery brands (-13 and -11 respectively).

Supermarkets that appear in the top 10 include ALDI (fifth place) and Harris Farm Markets (10th place).

Overall, Bunnings came out on top in the index, reclaiming its status as Australia’s favourite retailer.

“Last year we saw ‘corner‑shop values’ return as trust in the majors frayed. With inflation and interest rates easing, Australians are backing their power to choose rather than buying out of necessity, and brands that have specialist propositions, rather than just being ‘big and available’ are winning,” says OC&C Strategy Consultants Australia Managing Partner Jeremy Barker.

“Brand trust is still the best guarantee of long-term market share, and shoppers make it clear that fair prices, reliable products, and honest communication, particularly about pricing, are what win their loyalty. The high-ranking retailers are those that make these elements central to their proposition, rather than just talking the talk.”

Differing habits among generations  

Gen Z has become the toughest audience in grocery, rating all brands more harshly – but the gap between Coles and Woolworths is widening. Coles has seen ratings collapse among Gen Z, while Woolworths, performs comparatively better.

Younger grocery shoppers – Millennials and Gen Z – are even more focused on a clear proposition. Those surveyed report shopping at Harris Farm (47%) and Costco (47%) versus Coles (16%) and Woolworths (29%) because they understand what these brands stand for and how they fit into the weekly routine. 

By comparison, older shoppers – Gen X and Baby Boomers – are more firmly rooted to Coles (84%) and Woolworths (71%). The big grocery brand bucking this trend is ALDI, which has been shopped by 80% of surveyed Gen X and Baby Boomers.

Sustainability resurgence

One value that has seen a resurgence in influence is sustainability.

Between 2023 and 2024, the proportion of those surveyed reporting that it actively influenced shopping decisions fell from 31% to 24%.

However, sustainability concerns rebounded in 2025, with 30% of respondents reporting it actively influences their behaviour, and a further 32% saying they are conscious of it when they shop.

Gen Z are even more influenced by this, with 40% reporting they actively shop sustainably

Liquor loyalty

Dan Murphy’s remains the nation’s favourite liquor retailer; a crown it has held since OC&C first launched the RPI in Australia in 2021.

This year, Dan Murphy’s continued to win on cross-category leaderboards including reliability and product quality. Its grip on the liquor retail category is, however, slipping. Those surveyed reduced their score for Dan Murphy’s across key metrics including product variety, product suitability and reliability (-4 points across all categories). 

The findings hold weight for Coles, which is pressing ahead with a one-brand play, retiring Vintage Cellars and First Choice and converting stores to Liquorland Cellars and Liquorland Warehouse respectively.

“Dan’s remains the liquor benchmark, but competitors are catching up on trust, variety and product suitability,” says Mr Barker.

“Our data suggested they’ve over‑emphasised owned and exclusive labels at the expense of the big brands younger drinkers want, particularly in beer and premix.

“Dan’s could have a real fight on its hands in 2026 as Liquorland re-organises and we expect this battle to centre on curation, convenience and culture as much as everyday price.”