Parties double down on call to split Coles, Woolworths duopoly amid soaring supermarket prices

As we all navigate the ever-tightening squeeze of the cost-of-living crisis, it's become increasingly clear that Australian shoppers are bearing a heavy burden.

Recent reports have highlighted a startling reality about food prices.

The staggering figures have sparked a heated debate about the dominance of Coles and Woolworths in the supermarket sector, and whether it's time to break up their duopoly.


According to Labor MP Andrew Charlton, Aussie shoppers are paying some of the highest prices for food in the developed world as they navigate a cost-of-living crisis.

‘Australians are paying 54 per cent more than the world average for food,’ he said.

This revelation intensified the push on the government to dismantle the dominance of Coles and Woolworths, prompting lawmakers to develop new legislation.


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The Greens, Nationals, and Liberals are proposing their own laws to counter soaring food prices and address the dominance of Coles and Woolworths in the supermarket landscape. Credits: Shutterstock


The data from the World Bank is eye-opening, to say the least.

Australians are forking out up to 41 per cent more for meat, 45 per cent more for dairy, and an astonishing 46 per cent more for fruit.

However, the price hikes don't stop there.

Bread costs Australians as much as 73 per cent more, and seafood 63 per cent more.

While for those who enjoy a tipple, beer and wine are up to 85 per cent more expensive Down Under.


Charlton laid the blame for these exorbitant prices at the feet of the major supermarkets and multinational food suppliers.

‘The global executives of these companies call Australia “Treasure Island”,’ he asserted, suggesting they charge premium prices simply because the market allows it.

While Coles and Woolworths report profits exceeding a billion dollars, consumers are struggling to afford their weekly groceries, and farmers are voicing concerns that their prices are being undermined.

In response to this, the Greens introduced a divestiture bill to the Senate, which proposes giving the government the power to dismantle supermarket businesses if they are found to be abusing their market power.

Such divestiture laws are not new concepts, as they are already in place in countries like the United States and the United Kingdom to break up companies that engage in anti-competitive practices across various industries.


Meanwhile, the Nationals and Liberals are crafting their own legislation.

Nationals Leader David Littleproud emphasised a focus on supermarkets, seeking to avoid broader economic repercussions.

‘The bill that the Greens put in place was deficient in design,’ he asserted.

‘We’re very proud of the fact that Peter (Dutton) and the Liberals want to work through this to make sure there are no unintended consequences and there’s fairness in prices from the farm gate to your plate.’

Under the proposed laws, grocery retailers that engage in 'egregious' anti-competitive behaviour could be compelled to sell stores to smaller independents.

However, Littleproud insisted that safety tests must be applied to ensure these actions do not inadvertently harm competition.

‘That makes sure that there is a smaller competitor that can come in and take that,’ he stated.


Despite these legislative efforts, the government expressed reluctance to endorse divestiture proposals for supermarkets, citing potential job losses at some of the nation's largest employers.

Prime Minister Anthony Albanese described the threats to dismantle the big two as akin to 'Soviet-style laws' and instead initiated several inquiries into the pricing practices of Coles and Woolworths.

‘My government’s determined to hold them to account,’ he declared.
Key Takeaways
  • Australians are paying significantly more for food, with prices soaring above the world average in the midst of a cost-of-living crisis.
  • There is growing pressure on the government to address the dominance of Coles and Woolworths, and consider breaking them up to encourage more competition.
  • Proposed divestiture laws, similar to those in America and Britain, might give the courts and consumer watchdog the power to break up supermarkets if they misuse their market power.
  • Although there were divergent views on the best approach, with safety checks to avoid adverse effects on competition, the government had thus far dismissed divestiture, citing concerns about potential job losses.
Have you noticed a significant increase in your grocery bills? Do you believe breaking up the supermarket duopoly could lead to fairer prices, or are there other solutions we should explore? Share your thoughts and experiences in the comments below.
 
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If customers want to save money, they can purchase all homebrand products from Coles & Woolworths, otherwise shop at Aldi with their similar homebrand products. I've found IGA to be more expensive.
 
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You get charged the same at IGA? Give me a break! They take price gouging to a whole new level.
My IGA charges mostly 10% more than the nearest Coles. Costs me around $35 in petrol to drive to Coles, so a $350 shop in IGA costs the same. Its just the range is not quite as good.
 
I have been to UK many times in my lifetime and always compare prices to what we pay here. The prices quoted by the above are really not all that different to our prices. as 50p is approx a dollar here. Potatoes as quoted at 1.49
per KILO is almost $3 where as I pay at the GREEN grocers $ 5,99 for 4 kilos. I did find that other vegetables at the markets not supermarkets in one of the expensive towns in Sussex that were much cheaper than here. Of ocurse they are coming direct from the growers
 
I have been to UK many times in my lifetime and always compare prices to what we pay here. The prices quoted by the above are really not all that different to our prices. as 50p is approx a dollar here. Potatoes as quoted at 1.49
per KILO is almost $3 where as I pay at the GREEN grocers $ 5,99 for 4 kilos. I did find that other vegetables at the markets not supermarkets in one of the expensive towns in Sussex that were much cheaper than here. Of ocurse they are coming direct from the growers
I've been to the UK as well. The difference being they have more competition than ours.
 
I've been to the UK as well. The difference being they have more competition than ours.
and having to transport from Qld to the states that their big buyers are, ie. NSW & Vic. With Diesel at $2+ p/l a large kenworth truck has around 1500lt tanks to do the entire trip from north to south. Needless to say the cost of transport in this country is well above that of the UK (for local grown produce). Unlike the UK, limited fresh produce is allowed to be import to Aust. The economy of scale also needs to be considered. 26+mil vs 65+mil.
 
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and having to transport from Qld to the states that their big buyers are, ie. NSW & Vic. With Diesel at $2+ p/l a large kenworth truck has around 1500lt tanks to do the entire trip from north to south. Needless to say the cost of transport in this country is well above that of the UK (for local grown produce). Unlike the UK, limited fresh produce is allowed to be import to Aust. The economy of scale also needs to be considered. 26+mil vs 65+mil.
I do know that during covid lockdown, Woolworths changed their policy for meat. They sourced local meat suppliers instead of interstate. As an example, my local Woolworth stores still purchase chicken from that local source. Kangaroo meat in Coles & Woolworths is sourced from SA.
 
Have a look at the behemoth called Bunnings while we are at it.

Wesfarmers would have to be one of the most hideous conglomerates in this country.
Well, when I go to Bunnings, it is absolutely packed with people., people love bunnings! !
 
You are wasting your breath.... I gave up long ago. DON'T SHOP AT EITHE COLES OR WOOLLIES. That will make them sit up and take note.....they will not make the extortionate profits they do and that is not good for shareholders...
No one forces you to shop at woollies or Coles. I like Coles. Variety is good and it convenient. Our local has plenty of specials, including meat. It would be so nice if people just stop whinging and chronically moaning about anything and everything.
 
I sold to supermarkets most of my career and they do have a set routine where basically they never lose. It's quite difficult to get on range with most of them, Aldi was the fairest and would take anything they saw as good value, without any demands for extra discounts etc.
To do business you have to agree to a multitude of terms and conditions, including paying a percentage to be paid quicker than 30 days, rebates or straight monies on your turnover paid regularly as a percentage negotiated at commencement of trade and usually goes up every year with growth. Also, ullage, a percentage on turnover for their shrinkage. Here's the good part, if you think they are selling your product too highly priced, you can reduce your prices to them, pay them for advertising and they will sell cheaper (at your cost?) we even had to pay lump sums to attend their national meetings where they thanked suppliers for their amazing profit results. We could pay a lot extra to sit with buyers or their leaders at a table and dine with them. It's been going on for years and suppliers are definitely the worse off in my opinion.
 
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What once was the lucky country is now the land of the ripoffs!!!
 
When making comparisons with other countries/ markets people in Australia conveniently forget we are a very small market (1/10th the size of either Europe or the USA) and we are far away from major international suppliers. I'm always surprised how little many items cost considering they've been transported half way round the world to get here.
Love your answer.
We, as a country far from any other, has to get a lot of stuff - food, electrical white goods, clothes etc - from overseas. Manufacture might be cheaper in some countries but it’s the transport of these items that cost a fair bit which has to be factored in to the sale price to the consumer here. And everyone in business is there to make a profit no matter how small or big. I don’t hear much comment about our multi-millionaires and where and how they made their money, because it’s only mainly food that these comments are about. ANYONE IN BUSINESS MAKES A PROFIT. We, the customer has and will continue to be the source of that profit, no matter how you may look at it.
 
What once was the lucky country is now the land of the ripoffs!!!
Well , you are free to leave the country at any stage, no one is holding you here against your will. Let us all know when you find a better country in the world to live in. Perhaps you could try China??
 
Compare the disposable incomes between Australia and the UK then look at the prices in the UK. British people are having a very hard time, much worse than Aus.
You are right Mr Chips. The UK is very expensive. We were there last year on a walking holiday and meals were at least double to what we pay here in Australia at a pub. Things will only get worse with this renewable energy saga. Electricity price's have gone through the roof in the UK our friends there tell us. Supermarkets use a lot of electricity, so any increase will be added to everything we buy.
 
Bisto gravy granules at woolies this week a shocking $9.00, gravox a cheaper option but how to compare with one $ per 10 gram and the other $ x 100 gram
 
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But where else is there to shop for food? Aldi? No Aldis here.The local grocer? Colesworth have put them out of business years ago. The street market on Saturday; from which wholesaler does the street market get its vegies and other food? Woolworth's wholesale people?
Ahhh you hit the nail on the head....'put the small business OUT OF BUSINESS' That is the ultimate aim of both, I worked for them so trust me.
When they open a new store or have a major refurbish the first thing they do is scan the market area for small businesses and put them 'out of business'...... in the area I was living in they opened a Sushi shop and a coffee shop inside Woolworths and charged prices that were lower than the small Sushi shop and Cafe outside.
Once the small businesses went 'out of business' UP went the Woolworths prices.
 
Bisto gravy granules at woolies this week a shocking $9.00, gravox a cheaper option but how to compare with one $ per 10 gram and the other $ x 100 gram
Even cheaper than the retail stores is to make your own.. it's only cornstarch.
 
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