Is Your Grocery Bill Making Big Companies Rich While You Struggle? See What Oxfam Australia Exposed!
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As Australians, we're all too familiar with the weekly ritual of grocery shopping and the sting of seeing prices creep up at the checkout. But while we're counting our pennies and clipping coupons, it seems the big supermarket chains are counting their profits—and they're not small change. Oxfam Australia has recently highlighted a bitter truth: as consumers grapple with rising living costs, the profits of Coles and Woolworths are leaving a sour taste in the mouths of many.
The financial figures are eye-opening. Coles reported a hefty $1.1 billion profit, up 10 percent from the previous year, earning 2.56 cents for every dollar spent by customers. Woolworths, not far behind, announced an initial net profit of $1.7 billion, although this was reduced to $108 million after accounting for impairments to its New Zealand business. Despite this, Woolworths' food division still makes 2.5 cents on every dollar spent by shoppers.
These numbers are significant, especially when considering that Coles and Woolworths together control a staggering 65 percent of Australia's grocery market. This duopoly has long been a point of contention, with concerns over their influence on pricing at every stage of the supply chain—from farmgate to checkout.
The public outcry has been loud and clear, with Oxfam Australia's chief executive, Lyn Morgain, voicing the frustration of many: 'It's unacceptable that while everyday Australians are struggling to put food on the table, Woolworths and Coles continue to report staggering profits.' Morgain calls for government intervention to address what she describes as 'failures in the system that allow this toxic situation to continue.'
The issue has caught the attention of federal and state governments, prompting inquiries into supermarket pricing and the relationship between wholesale, farmgate, and retail prices. The Australian Competition and Consumer Commission (ACCC) is set to release an interim report in September, which is eagerly awaited by those hoping for change.
Oxfam's stance is particularly critical of the profits made during the Covid-19 pandemic, suggesting that these 'crisis profits' should be taxed to discourage price gouging and to provide funds to address inequality and ease cost-of-living pressures. However, the Treasury has indicated that a crisis profit tax is not currently under consideration.
Despite the supermarkets' claims of giving back to the community through donations and supporting local suppliers, the question remains: are these efforts enough to balance the scales when profits are so high, and consumers are feeling the pinch?
Coles and Woolworths have declined to respond directly to Oxfam's comments, but they have highlighted their contributions to the community and efforts to provide value to customers. Coles CEO Leah Weckert pointed to price reductions on essential items and savings from anti-theft technology, while Woolworths emphasized its role as a major employer and its investment in supply chain resilience.
The debate is complex, with many Australians' superannuation funds invested in these supermarket giants, indirectly benefiting from their profits. Yet, the immediate reality for many is a struggle to afford the weekly shop.
As we await the findings of the ACCC inquiry, it's clear that the conversation around supermarket profits and their impact on consumers is far from over. The question of how to ensure a fair go for families and farmers alike remains a pressing one.
So, as you scan your next grocery receipt and wonder where your hard-earned money is going, remember that you're not alone in asking for a fairer deal. The balance between profit and affordability is delicate, and it's time for a closer look at how our grocery dollars are really being spent.
What are your thoughts on the profits of Coles and Woolworths? Have you felt the impact of rising grocery prices? Share your experiences and join the conversation below. We're all in this together, and it's only by speaking up that we can hope to bring about change.
The financial figures are eye-opening. Coles reported a hefty $1.1 billion profit, up 10 percent from the previous year, earning 2.56 cents for every dollar spent by customers. Woolworths, not far behind, announced an initial net profit of $1.7 billion, although this was reduced to $108 million after accounting for impairments to its New Zealand business. Despite this, Woolworths' food division still makes 2.5 cents on every dollar spent by shoppers.
These numbers are significant, especially when considering that Coles and Woolworths together control a staggering 65 percent of Australia's grocery market. This duopoly has long been a point of contention, with concerns over their influence on pricing at every stage of the supply chain—from farmgate to checkout.
Two major supermarket chains faced criticism from Oxfam Australia for alleged price-gouging during a cost-of-living crisis. Image Credits: Shutterstock/Jane Malone, Luua Sharma
The public outcry has been loud and clear, with Oxfam Australia's chief executive, Lyn Morgain, voicing the frustration of many: 'It's unacceptable that while everyday Australians are struggling to put food on the table, Woolworths and Coles continue to report staggering profits.' Morgain calls for government intervention to address what she describes as 'failures in the system that allow this toxic situation to continue.'
The issue has caught the attention of federal and state governments, prompting inquiries into supermarket pricing and the relationship between wholesale, farmgate, and retail prices. The Australian Competition and Consumer Commission (ACCC) is set to release an interim report in September, which is eagerly awaited by those hoping for change.
Oxfam's stance is particularly critical of the profits made during the Covid-19 pandemic, suggesting that these 'crisis profits' should be taxed to discourage price gouging and to provide funds to address inequality and ease cost-of-living pressures. However, the Treasury has indicated that a crisis profit tax is not currently under consideration.
Despite the supermarkets' claims of giving back to the community through donations and supporting local suppliers, the question remains: are these efforts enough to balance the scales when profits are so high, and consumers are feeling the pinch?
Coles and Woolworths have declined to respond directly to Oxfam's comments, but they have highlighted their contributions to the community and efforts to provide value to customers. Coles CEO Leah Weckert pointed to price reductions on essential items and savings from anti-theft technology, while Woolworths emphasized its role as a major employer and its investment in supply chain resilience.
The debate is complex, with many Australians' superannuation funds invested in these supermarket giants, indirectly benefiting from their profits. Yet, the immediate reality for many is a struggle to afford the weekly shop.
As we await the findings of the ACCC inquiry, it's clear that the conversation around supermarket profits and their impact on consumers is far from over. The question of how to ensure a fair go for families and farmers alike remains a pressing one.
So, as you scan your next grocery receipt and wonder where your hard-earned money is going, remember that you're not alone in asking for a fairer deal. The balance between profit and affordability is delicate, and it's time for a closer look at how our grocery dollars are really being spent.
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and you’d have plenty of sun there I have solar powered lights around the unit bit of a pain, because they go on and off all night because of the possums and the wind 
