Senate inquiry demanded amid major supermarkets’ price surge during cost-of-living crisis
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It is no secret that the cost-of-living crisis has been taking a toll on families worldwide. From consecutive interest rate hikes pushing up mortgage payments to rents and grocery bills rising, Australians have been feeling the pinch on their weekly budget.
In a bid to get to the bottom of the issue, the Greens have called for a senate inquiry into pricing strategies employed by Coles and Woolworths supermarkets—the notorious ‘duopoly’.
The inquiry is expected to scrutinise whether customers are being subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.
The incremental surge of essential item prices and the prevalent opportunistic pricing and mark-ups by the two major supermarket chains will also be examined during the inquiry.
The senate investigation is anticipated to be established next week as Parliament sits for the final time this year, just as the Labor party expressed support for the Greens.
The initial hearings for the inquiry are said to take place in early 2024.
Greens Economic Justice spokesman Senator Nick McKim said: 'Coles and Woolworths are making billions in profits by price gouging in a cost of living crisis'.
'For too long, the big supermarkets have had too much market power. This allows them to dictate prices and terms that are hitting people hard. It’s time to smash the duopoly,' he added.
Senator McKim wants the major supermarket CEOs to front the inquiry and ‘justify their decisions’ during hard times while adding it would be a ‘critical step’ towards toppling market concentration.
‘We’ll find a way to dismantle their power and bring grocery prices down,’ he said.
‘It is about that Australians can afford to eat without being exploited and that suppliers are treated fairly.’
A spokesperson from Woolworths supermarket said they are ‘committed to offering our customers value while working with our suppliers to manage economy-wide inflationary pressures’.
‘We know Australians are feeling the strain of cost of living, and we are working to deliver relief in their weekly grocery shop,’ the spokesperson added.
‘As we start to see the rate of inflation ease, we will continue to focus on delivering savings to our customers.’
A spokesperson from Coles supermarket also shared they ‘believe all Australians should be able to put quality food on the table for their families, at a good price’.
The Coles supermarket also said that having a ‘profitable business’ just means they can continuously serve Australians and employ their 120,000 staff.
Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers? Let us know in the comments below!
In a bid to get to the bottom of the issue, the Greens have called for a senate inquiry into pricing strategies employed by Coles and Woolworths supermarkets—the notorious ‘duopoly’.
The inquiry is expected to scrutinise whether customers are being subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.
The incremental surge of essential item prices and the prevalent opportunistic pricing and mark-ups by the two major supermarket chains will also be examined during the inquiry.
Coles and Woolworths will be subjected to a senate inquiry regarding their price hikes during the cost-of-living crisis. Image: Reddit
The senate investigation is anticipated to be established next week as Parliament sits for the final time this year, just as the Labor party expressed support for the Greens.
The initial hearings for the inquiry are said to take place in early 2024.
Greens Economic Justice spokesman Senator Nick McKim said: 'Coles and Woolworths are making billions in profits by price gouging in a cost of living crisis'.
'For too long, the big supermarkets have had too much market power. This allows them to dictate prices and terms that are hitting people hard. It’s time to smash the duopoly,' he added.
Senator McKim wants the major supermarket CEOs to front the inquiry and ‘justify their decisions’ during hard times while adding it would be a ‘critical step’ towards toppling market concentration.
‘We’ll find a way to dismantle their power and bring grocery prices down,’ he said.
‘It is about that Australians can afford to eat without being exploited and that suppliers are treated fairly.’
A spokesperson from Woolworths supermarket said they are ‘committed to offering our customers value while working with our suppliers to manage economy-wide inflationary pressures’.
‘We know Australians are feeling the strain of cost of living, and we are working to deliver relief in their weekly grocery shop,’ the spokesperson added.
‘As we start to see the rate of inflation ease, we will continue to focus on delivering savings to our customers.’
A spokesperson from Coles supermarket also shared they ‘believe all Australians should be able to put quality food on the table for their families, at a good price’.
The Coles supermarket also said that having a ‘profitable business’ just means they can continuously serve Australians and employ their 120,000 staff.
Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers? Let us know in the comments below!
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