ACCC Report Reveals Coles and Woolworths’ Dominance in Supermarket Sector
Title: ACCC Report Reveals Coles and Woolworths’ Dominance in Australian Supermarket Sector
In a recent survey conducted by Finder, it was found that two in five Australians consider their grocery bill to be their most stressful expense. The rising grocery costs, which have increased by about 24 per cent in the last five years, have prompted the Australian Competition and Consumer Commission (ACCC) to release a new report addressing the issue.
The report highlights that Coles and Woolworths, two of the largest supermarket chains in Australia, are among the most profitable supermarkets in the world. With Woolworths controlling 38 per cent of national grocery sales and Coles controlling 29 per cent, the report suggests that the pair are operating in an ‘oligopoly’, where a small number of sellers control prices to the detriment of consumers and competition.
Assistant Minister for Competition, Andrew Leigh, expressed concern over the findings, stating that the lack of competition in the grocery sector is alarming. The report, which does not accuse the supermarkets of breaking any consumer laws, makes 20 recommendations for reform.
The Federal Government has agreed in principle to all 20 recommendations, with some already being implemented. One key recommendation is to force major supermarkets to publish all product prices on their websites to provide more transparency for consumers and suppliers.
While Coles and Woolworths have welcomed greater transparency, they have raised concerns about potential increased costs and red tape. Consumer advocacy group Choice has emphasized that any additional costs should be absorbed by the supermarkets and not passed on to consumers.
The report also addresses the challenges faced by consumers in rural and remote areas, where grocery costs are even higher due to limited competition. Recommendations have been made to offset these additional costs and make food more affordable in these regions.
Overall, the ACCC report sheds light on the dominance of Coles and Woolworths in the Australian supermarket sector and the need for greater transparency and competition to benefit consumers and suppliers alike.
