The Australian Competition and Consumer Commission (ACCC) has conducted a comprehensive investigation into the supermarket sector, revealing some critical findings and making wide-reaching recommendations for reforms. The report, released by the ACCC, concludes that Coles, Woolworths, and Aldi have been boosting profits during the cost-of-living crisis by increasing prices and using promotions that make it hard to discern a good shopping deal.
The major finding of the 441-page report is that these supermarkets, along with discount rival Aldi, are among the most profitable supermarket businesses globally and that the sector requires significant reform. The ACCC has proposed 20 reform recommendations to the federal government, including a mandate for Coles, Woolworths, and Aldi to publish all prices on their websites and allow online comparison tools to access this data to inform shoppers.
The recommendations aim to improve the transparency of pricing, promotions, and loyalty programs to help customers better understand whether an offer is actually a good deal. Additionally, the chains would be required to notify customers when a product’s size has reduced, alerting shoppers to the practice of “shrinkflation,” which is commonly used to hide price increases without appearing to do so.
The ACCC has also advised that supermarkets provide more transparency in their negotiations with fresh produce suppliers, after finding a significant imbalance in bargaining power. This issue has been highlighted by fruit and vegetable suppliers who have expressed their need for firmer commitments on the amount of produce that supermarkets will buy to avoid financial losses and wastage.
The treasurer, Jim Chalmers, has stated that the government is taking action to ensure Australians are not treated unfairly by supermarkets, aiming for a fair go for both families and suppliers. The supermarkets have been defending their pricing decisions and assert their commitment to assisting with cost-of-living pressures, stating that they maintain healthy relationships with the agricultural sector.
The report is released ahead of an election where issues of cost of living will be central, with the prices of housing, utilities, and groceries being key concerns.
Source: https://www.theguardian.com/australia-news/2025/mar/21/accc-report-supermarkets-coles-woolworths-aldi
