Many Australian consumers and grocery suppliers have told the ACCC they are concerned that some of Australia’s supermarket retailers have considerable market power and are engaging in practices which disadvantage both their customers and suppliers. This Interim Report for the Supermarkets Inquiry outlines what the ACCC has heard at the halfway point of the year-long Inquiry. 

Key findings

• Supermarket retailing in Australia is an oligopoly, with Woolworths and Coles accounting for 67 per cent of supermarket retail sales nationally. Aldi accounts for 9 per cent and Metcash supplied independent supermarkets 7 per cent.
• The price of a typical basket of groceries has increased by more than 20 per cent in the past five years.
• The majority of respondents in low-income households are spending more than 20 per cent of their net income on groceries.
• Many consumers are concerned about higher prices at the supermarket and are increasingly comparing grocery prices online before going shopping. However, they face real difficulties in trying to compare prices and find the best value for products.
• Many grocery suppliers consider they sometimes receive prices below the cost of production and have little choice but to agree to highly unfavourable terms, with these terms being subject to ongoing changes by the major retailers.
• ALDI has taken more than 20 years to reach a 9 per cent share of national supermarket retail sales. This demonstrates the level of difficulty entering and expanding in supermarket retailing, and the significant investment, time and differentiated offering required to expand.