No silver bullet for supermarket issues, says ACCC

April 7, 2025 BY

The Australian Competition and Consumer Commission's final report includes recommendations to get consumers a better deal at the checkout. Photo: PIXABAY

COLES and Woolworths are among the most profitable businesses in the world and enjoy an “oligopolistic” dominance over the supermarket sector that is expected to continue, a year-long inquiry has found.

The Australian Competition and Consumer Commission (ACCC) last month handed down its final report, outlining 20 recommendations aimed at improving competition and bargaining conditions for suppliers, and getting consumers a better deal at the checkout.

Among the recommendations are calls for clearer pricing practices, greater transparency for suppliers and reforms to planning and zoning laws, but the ACCC has stopped short of advocating for divestiture powers that would enable the Federal Government to forcibly break up the supermarket chains.

“There is no silver bullet that will address all the issues we have identified in the supermarket sector,” ACCC deputy chair Mick Keogh said.

“But we are confident that our recommendations will make a difference for consumers, will equip suppliers to make more informed business and investment decisions while bearing a more appropriate level of risk, and will boost competition in the sector.”

Mr Keogh noted a key concern raised throughout the inquiry by consumers was the lack of notice of price increases and instances of ‘shrinkflation’, with the final report recommending supermarkets be required to publish notifications when this occurs.

“This information would, at a minimum, be required to be published in proximity to the product ticket on shelves, and on the webpage for the product,” he said.

“By giving consumers this transparency over what are effectively price increases, consumers would be better able to ‘vote with their feet’ and switch to cheaper alternatives if that is their preference.”

Consumer group CHOICE welcomed the final report and the in-principle support for its recommendations by the Federal Government shortly after its release.

“People continue to be worried about the cost of groceries,” CHOICE chief executive Ashley de Silva said.

“Addressing confusing promotions, shrinkflation and the lack of price transparency will make a big difference for consumers at the supermarket.”

The ACCC’s report confirms this is a highly concentrated market, with the major supermarkets

appearing to be among the most profitable in the world during a cost-of-living crisis.

“We need to fix the power imbalance between supermarkets and consumers and price transparency will help us do that.”