ACCC Report Calls for Reform in Australia’s Supermarket Sector

The regulator highlights Woolworths and Coles' market dominance, rising grocery prices, and supplier power imbalances, proposing 20 recommendations for increased competition and transparency.

Woolworths and Coles collectively control 67% of Australia's grocery market, creating an oligopolistic structure with limited competition.
The ACCC found that grocery prices have risen 24% over five years, outpacing wage growth, with supermarkets increasing profit margins during the same period.
The report recommends 20 reforms, including pricing transparency, regulation of promotional practices, addressing shrinkflation, and improving supplier protections.
The federal government has agreed in principle to the recommendations but has not committed to full implementation, leaving the future of reforms uncertain.
The ACCC is pursuing lawsuits against Woolworths and Coles for alleged misleading pricing practices, while political debate continues over stronger regulatory measures like divestiture powers.