Bunnings tops retail trust while majors lag on value & fun

Bunnings has reclaimed its position as Australia's favourite retailer, according to the latest OC&C Strategy Consultants' 2025 Retail Proposition Index (RPI).

The annual RPI survey measured the views of 5,078 Australian shoppers across 100 retailers in 16 categories, seeking perspectives on trust, clarity of proposition, and value for money. Bunnings emerged at the top of the rankings, while grocery chains Costco and Aldi also performed strongly, placing fourth and fifth overall, respectively. Harris Farm reached the top 10 for the first time, taking the tenth spot.

Major supermarkets outside the top

Coles and Woolworths, Australia's national supermarket giants, continued to rank outside the overall top 10. Within the grocery sector, both Coles and Woolworths were rated behind Costco, Aldi, Harris Farm, and IGA. Respondents reported these supermarkets as offering less value for money, being less enjoyable to shop with, and creating less pride in being a customer. Specifically, value for money scores for Coles and Woolworths fell 18 and 14 points below the category leader Costco, respectively. Both were seen as less fun to shop at, with scores 19 points lower, and scored lower in 'pride in shopping' by 13 and 11 points, respectively.

Since the RPI's launch in 2021, Coles and Woolworths have seen notable declines in key areas such as 'trust' (down 11.8 and 8.4 points, respectively), 'low prices' (down 15.4 and 9.7 points), and 'customer service' (down 6.2 and 5.7 points). Despite some modest improvements since 2024, both brands continue to face challenges in these domains.

"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.

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," said Jeremy Barker, Managing Partner, OC&C Strategy Consultants, Australia.

Liquor retail competition intensifies

Within the liquor sector, Dan Murphy's maintained its position as the top retailer since the RPI was first conducted. This year, the chain continued to lead in areas such as reliability and product quality. However, the survey showed a decline for Dan Murphy's across several shopper metrics including product variety, suitability, and reliability, with a reduction of 4 points across all these categories.

The changing landscape holds implications for Coles, which is consolidating its liquor brands under the Liquorland Cellars and Liquorland Warehouse banners, retiring Vintage Cellars and First Choice by the end of 2025. This strategic shift sets up a future competition with Dan Murphy's for leadership in the liquor retail space.

"Dan's remains the liquor benchmark, but competitors are catching up on trust, variety and product suitability. 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," remarked Jeremy Barker.

Generational shifts in preference

The survey's findings highlight differences in shopping habits between age groups. Younger shoppers, particularly Millennials and Gen Z, have emerged as discerning and selective customers, with a strong preference for retailers such as Harris Farm and Costco. Nearly half of these shoppers reported frequenting Harris Farm (47%) and Costco (47%), compared to 16% for Coles and 29% for Woolworths. The preference reflects a focus on clarity of brand proposition and how well the retailer fits into their weekly routines.

Conversely, older generations, including Gen X and Baby Boomers, remain more loyal to Coles (84%) and Woolworths (71%). Aldi stands out for its broad appeal, with 80% of Gen X and Baby Boomers shopping there, cutting across generational divides.

Sustainability on the rise

Sustainability considerations, which had seen a decline in influence on shopping decisions between 2023 and 2024, have rebounded in 2025. The survey reported a rise in consumers who say sustainability actively influences their behaviour from 24% the previous year to 30%. An additional 32% are conscious of sustainability when shopping. Gen Z shoppers are leading this trend, with 40% saying they actively shop for sustainable products.

Now in its fifth year, the OC&C Retail Proposition Index continues to reveal shifts in Australian shopper attitudes, providing insights into how trust, value, proposition clarity, and sustainability affect retail choices.