ACCC report finds Australians have lost trust in supermarkets as it focuses on Coles and Woolworths' market power and barriers to entryACCC report finds Australians have lost trust in supermarkets as it focuses on Coles and Woolworths' market power and barriers to entryThe ACCC investigation has been running since the start of the year, with its final report due in February 2025.
As part of its investigation, the competition watchdog spoke to more than 21,000 customers, many of whom said they were concerned about higher prices and had difficulties finding the best value for products. "Consumers have raised a lot of concerns about high prices, their concerns about profit margins and their concerns about confusing pricing policies," he told the ABC.
With the cost of everyday items a pressing issue for customers, the ACCC found the price of a typical basket of groceries had increased by more than 20 per cent in the past five years but they said it was in line with inflation. "That's a pretty slow level of growth compared to the dominance of the two majors who have increased their dominance over that period of time," Mr Keogh said.Its preliminary view is that Costco's entry in 2009 and ALDI's successful expansion demonstrates the "significant investment, time and differentiated offering" required to expand in the Australian supermarket landscape.
The ACCC is looking at a whole range of issues in the supermarket sector, including the relationship between wholesale, farmgate and retail prices.It has identified 14 products — including beef, bananas and pork — that it will analyse and use for comparisons for the remainder of the inquiry.