The Australian Competition and Consumer Commission (ACCC) initiated an investigation into supermarket pricing last year, and recently released its findings. The investigation revealed that over 40% of Australians have altered their grocery shopping habits, reflecting growing consumer concern regarding supermarket pricing strategies. This highlights the need for greater transparency and fairness in the retail sector.
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03-21, 2025Research from Canstar Blue indicates that consumers are becoming more cautious when shopping at major supermarkets, with 17% admitting they have reduced their shopping frequency at these stores. This phenomenon is linked to previous reports revealing Woolworths and Coles as among the most profitable supermarkets globally, raising questions among consumers about the reasonableness of supermarket pricing. Consumers are actively seeking alternatives to maximize their purchasing power.
The ACCC's investigation found that grocery prices have risen by 24% over the past five years and criticized supermarkets for failing to pass on cost savings to consumers. Nevertheless, the ACCC did not define Woolworths and Coles as a "duopoly" nor accuse them of price gouging. Data shows that Woolworths accounts for 38% of national grocery sales, Coles 29%, Aldi 9%, and independent supermarkets 7%. The market share distribution highlights the competitive dynamics within the industry.
Canstar Blue spokesperson Eden Radford stated that only 36% of Australians admitted that the ACCC investigation did not change their shopping habits. "The survey shows that while slightly more than a third of shoppers seem oblivious to the findings, nearly a quarter feel it is enough to make them look at any promotions they see with a critical eye, and enough to make 17% of Australians shop elsewhere," she said. This indicates a growing awareness and shift in consumer behavior.
In its released report of over 400 pages, the ACCC called for action to address "shrinkflation," price transparency, confusing promotions, zoning regulations, and a range of supplier protection issues, but did not recommend more extreme actions such as breaking up companies or imposing fines. Radford stated that comparing prices and finding places where better deals can be obtained is more important than ever. "While many of us may be shocked by what the ACCC investigation has revealed, it really serves as a good reminder that the only way to truly know you are getting a good deal is to know your prices and shop around," she said. Consumer vigilance and informed decision-making are crucial in navigating the current retail landscape.
