Australians are doing it tough. Every trip to the supermarket is a painful reminder that the cost-of-living crisis is not just about inflation; it is about corporate greed. Families are paying more for everyday essentials, while Woolworths and Coles pocket some of the highest supermarket profits anywhere in the world. The Australian Competition and Consumer Commission [ACCC] final report on the supermarket industry confirms what people in Leppington and right across Australia have known for years: Coles and Woolworths dominate, stifle competition, squeeze suppliers and inflate prices, all while pretending they face significant market pressure. Together, these two supermarket giants control 67 per cent of the national grocery market.
The ACCC debunked their claims of strong competition from Bunnings and Amazon, finding that only Aldi offers any meaningful alternative, while similar players like IGA lack the scale to challenge them. This is not a competitive market. It is an oligopoly that exists to enrich shareholders at the expense of Australian households. Supermarkets claim inflation is driving prices up, but the numbers tell a different story. Over the past five years, Woolworths and Coles have systematically increased product margins. Potatoes are up 43 per cent, cucumbers 38 per cent, apples 35 percent, and eggs 31 per cent.
An article published by the Australia Institute in September last year exposed a pricing strategy by Coles and Woolworths known as a "sales dance" whereby the two supermarket giants alternated product discounts to avoid direct competition. One example, over a 10-week period, showed that Coles and Woolworths took turns discounting Coca-Cola and Pepsi. In one week, Coles would have Coke on sale while Woolworths discounted Pepsi. The following week, the discounts would switch, with Coles offering Pepsi at a lower price while Woolworths reduced Coke, often with identical prices. This coordinated pattern was observed week after week across multiple product lines for nearly three months. This is not a coincidence. It is deliberate, anti-competitive behaviour designed to maintain their duopoly and limit genuine competition.
It is not just at the product level these two giants enforce their oligopoly. In 2016, Kaufland, a German supermarket giant, began its planned Australian expansion, securing over 20 sites, hiring 200 staff and building a $255 million distribution centre in Victoria. However, in January 2020, after investing half a billion dollars into the expansion, Kaufland abruptly withdrew from the market. A key factor in its decision was the long-term, anti‑competitive contracts that Coles and Woolies had with suppliers, making it difficult for new entrants to compete. Despite the cost-of-living crisis, Coles reported a $1.1 billion profit, while Woolworths walked away with $1.62 billion. If these companies were struggling with rising costs, their profits would not be growing, but they are because they are choosing to keep prices high instead of passing on savings to consumers.
The ACCC had a golden opportunity to stand up for Australians and take real action against the supermarket giants squeezing every last cent out of families and farmers. Instead, the ACCC pulled its punches. Yes, the report outlines 20 recommendations to improve transparency, stop deceptive pricing and protect suppliers. However, let's be honest. Recommendations do not lower grocery bills. Recommendations do not put power back in the hands of consumers. The ACCC was recently handed $30 million over three years to investigate and enforce retail regulations, but what good are more investigations if the outcome is the same? The ACCC has been called a "toothless tiger", and this report proves why. It roars, it growls, but when it comes time to bite, nothing happens. It found Woolworths and Coles are among the most profitable supermarket chains in the world, that they have been ramping up their margins and they are not passing on savings to consumers. Somehow, there are no serious consequences.
Australians cannot afford to wait, and we should not have to. Grocery prices keep rising, supermarket profits keep soaring, and families are the ones paying the price. This has to stop. Here is what we need, and we need it now. Woolworths and Coles will not change on their own. They have had every opportunity to do the right thing, and they have chosen profits over people every single time. We need to increase competition. We need to have stronger market powers, and we need to have a stronger regulator. The time for polite recommendations is over. It is time for real action. It is time to stand up to corporate greed and put Australian families first. Enough is enough.
