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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The prices are on par with South Africa after trolling through their catalogues.
I don't know if they have GST.
 
Someone has to make these thieving supermarkets accountable!
I wonder how the executives of these companies sleep at night when families are struggling to put food on the table. Don't they have a conscience??? 😡
Conscience..... the word does not exist in their vocabulary, they don't know the meaning of the word. I am ok Jack, to hell with the plebiscites.
 
Am in the U.K. atm, and thoroughly enjoy food shopping and of course eating it!!
Avocados 50p, Swedes and turnips 15p, potatoes £ 1.49 per kilo, bread, 99p loaf, and it’s good bread. A duo Jelly and strawberry trifles 86p,
IF ANYONE SAYS SUPERMARKET FOOD IS EXPENSIVE HERE, it’s just not true.
Eating out is a different ball game, that is expensive, it’s on par with £ and $? eg
eggs Benedict £10.00, in Aus it’s around $20-24.
55pence =. $1.00
The variety of supermarkets is amazing also. And I can’t bring any of it home in my suitcase, except tinned or vacuum packs.
 
It really hurt when I paid $3.40 for a 35gram packet of Spencers parsley flakes. They were the only ones on the shelf at the time. I know there are cheaper ones but no others were on the shelf at the time. My husband was horrified at the price as was I.
 
Nothing new here. It's been going on for years. No competition. Successive governments have banned buying from the farm gate whereas other countries can do this. I've noticed over time there are less and less choices of products in the supermarkets. Also buying on line doesn't help. Meat in particular is even more expensive as most of the producers who supply online are smaller and want to make the same profits. Pity some can't realise lower prices would mean more sales so make the profits anyway. Here in this country the shareholder comes first not the customer but if they didn't have customers there would be no shareholders.
 
It really hurt when I paid $3.40 for a 35gram packet of Spencers parsley flakes. They were the only ones on the shelf at the time. I know there are cheaper ones but no others were on the shelf at the time. My husband was horrified at the price as was I.
If you can buy fresh from nursery or hardware store (yes they sell them) and either dehydrate or freeze.
 
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I'm scratching my head as to why they keep saying it's only Coles & Woolies that are overpriced, when you get charged the same at IGA and only a few cents less at Aldi!
Seems to me it's the whole food industry that needs a complete shake up if you want to be truthful... just saying❣️
 
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.
 
Australia has become the greedy country in the world. We are all being ripped off no matter what we buy. This is why we have to stop buying from these places. The government has not made an effort to stop this why because they are also collecting money from the hierarchy. Wake up Australia and stop buying from the larger money making supermarkets. Support your local grocery store.
 
I'm scratching my head as to why they keep saying it's only Coles & Woolies that are overpriced, when you get charged the same at IGA and only a few cents less at Aldi!
Seems to me it's the whole food industry that needs a complete shake up if you want to be truthful... just saying❣️
You get charged the same at IGA? Give me a break! They take price gouging to a whole new level.
 
Australia has become the greedy country in the world. We are all being ripped off no matter what we buy. This is why we have to stop buying from these places. The government has not made an effort to stop this why because they are also collecting money from the hierarchy. Wake up Australia and stop buying from the larger money making supermarkets. Support your local grocery store.
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...
 
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Australia has become the greedy country in the world. We are all being ripped off no matter what we buy. This is why we have to stop buying from these places. The government has not made an effort to stop this why because they are also collecting money from the hierarchy. Wake up Australia and stop buying from the larger money making supermarkets. Support your local grocery store.
Yes, I am sure that would solve the cost of living crisis!
 
Am in the U.K. atm, and thoroughly enjoy food shopping and of course eating it!!
Avocados 50p, Swedes and turnips 15p, potatoes £ 1.49 per kilo, bread, 99p loaf, and it’s good bread. A duo Jelly and strawberry trifles 86p,
IF ANYONE SAYS SUPERMARKET FOOD IS EXPENSIVE HERE, it’s just not true.
Eating out is a different ball game, that is expensive, it’s on par with £ and $? eg
eggs Benedict £10.00, in Aus it’s around $20-24.
55pence =. $1.00
The variety of supermarkets is amazing also. And I can’t bring any of it home in my suitcase, except tinned or vacuum packs.
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.
 

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