Turns out Coles and Woolworths aren’t just topping the local shopping scene—they’re also among the most profitable supermarkets in the world. And the ACCC thinks it’s high time they cleaned up a few things in aisle nine (and ten, and probably twelve too).
In a chunky 441-page report (yes, really), the Australian Competition and Consumer Commission rolled out 20 recommendations aimed at making grocery shopping a bit less confusing and a whole lot fairer - especially while Aussies are doing their best to stretch every dollar.
According to the report, both Coles and Woolies cranked up prices during the cost-of-living crisis - growing profits while customers hunted for bargains. The ACCC says many of the promotions made it tough to tell if a “special” was really all that special. Spoiler alert: sometimes it wasn’t.
The commission wants supermarkets to make all pricing crystal clear, including publishing prices online (no more guessing games), and opening up that info to comparison sites so shoppers can easily see who’s got the best deal. Plus, they’d like a heads-up when your favourite snack suddenly gets smaller but still costs the same - aka shrinkflation.
The report also zeroed in on the behind-the-scenes dealings with fresh produce suppliers. It found a serious imbalance in bargaining power, with many farmers left in the dark about how much stock the big supermarkets would actually buy. The ACCC wants more transparency so suppliers can plan properly and avoid waste.
Over the past five years, grocery prices have jumped - and while some of that’s down to increased costs, the ACCC says Coles, Woolworths, and Aldi also quietly bumped up their profit margins. So yes, your weekly shop got more expensive, and some of that went straight to boosting company profits.
“There’s no silver bullet here,” said ACCC Deputy Chair Mick Keogh, “but these changes would help shoppers get a fairer deal, support suppliers to make better decisions, and give competition a much-needed boost.”
The report lands right as cost-of-living issues take centre stage ahead of the next federal election - because let’s face it, groceries, rent, and energy bills are everyone’s least favourite trio right now.
Among the proposed changes: clearer unit pricing (so you don’t need a calculator in the detergent aisle), easier price comparisons across stores, and mandatory price displays - even in small or remote shops.
Treasurer Jim Chalmers summed it up simply: “This is about making sure Australians aren’t treated like mugs by the supermarkets.”
With the recommendations now on the table, all eyes are on how the government - and the big retailers - respond. In the meantime, your local grocery run might just be getting a little more transparent.
