A major report into Australia’s big supermarkets has dropped today, finding Coles and Woolworths are among the most profitable in the world.
The Australian Competition and Consumer Commission (ACCC) is releasing its long-anticipated report into the grocery sector, after a request by the Federal Government following allegations of price gouging.
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The ACCC found that Woolies and Coles increased prices during the cost of living crisis to boost profits and haven’t passed on cost saving measures.
Reports also show they’ve used promotions in a way that makes it hard for customers to judge a good special.
Coles and Woolworths collectively hold a 67% hold over national grocery sales.
The watchdog has not declared that Coles and Woolies have a duopoly. It has instead labelled the situation an “oligopoly”, meaning when a few businesses control a sector.
In this case it’s Coles, Woolworths, Aldi and Metcash, which looks after independent grocers like IGA.
The ACCC is urging supermarket reform with 20 recommendations to the government.
Among them is transparency on prices by forcing supermarkets to publish all prices on their websites and allow online comparison tools.
The watchdog has also recommended forcing supermarkets to show when a product has gone down in quantity but stayed the same price. Also to provide more transparency in their negotiations with fresh produce suppliers.
The ACCC Deputy Chair Mick Keogh says the measures will improve conditions for competition, consumers and suppliers. The government is yet to respond.
“There is no ‘silver bullet’ that will address all the issues… But we are confident that our recommendations will make a difference,” Keogh said.
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