The Australian Competition and Consumer Commission (ACCC) has concluded its investigation into the supermarket industry, issuing 20 recommendations to enhance market competition.
The inquiry revealed that ALDI, Coles and Woolworths rank high in profitability compared to international counterparts, with a noted rise in average product margins over the five fiscal years up to 2025.
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The ACCC estimates that Woolworths holds 38% of the national supermarket grocery market, Coles has 29%, ALDI accounts for 9% and Metcash, representing the independent supermarkets it supplies, has 7%.
The proposed measures encompass initiatives such as implementing more transparent pricing strategies, increasing supplier transparency and modifying existing planning and zoning regulations.
These steps are intended to foster a more competitive landscape within the supermarket sector, benefit consumers and provide suppliers with more equitable negotiation terms.
ACCC deputy chair Mick Keogh stated: “In the past 12 months, the ACCC has heard from more than 20,000 consumers who responded to our consumer survey, received more than 100 public submissions, held eight supplier roundtables, reviewed tens of thousands of internal documents, conducted private hearings and ten days of public hearings, and analysed billions of points of supermarket data.” The 20 recommendations made in the final report for the ACCC’s supermarkets inquiry are:
It’s essential for governments to explore backing for locally-owned shops in areas with limited options, especially those that are remote, while ensuring proper oversight.
It should be mandatory for supermarkets to disclose their pricing data.
Legislative action is needed to tackle issues related to urban planning and land use regulation.
Supermarkets ought to meet baseline requirements for sharing information about promotional discounts, along with maintaining records.
ACCC supports the consultation initiative by the Australian government regarding amendments to the Unit Pricing Code.
There should be an obligation for supermarkets to alert consumers when there is a reduction in product size that negatively impacts them.
Coles and Woolworths need to periodically provide their loyalty programme members with summaries of their data practices.
Loyalty schemes should undergo an evaluation after three years.
ACCC advocates for improved processes for handling consumer complaints in isolated areas.
Supermarkets must adhere to fundamental safeguards outlined in the Food and Grocery Code without exception.
There is a need for uniformity in standards for accreditation and auditing.
ALDI, Coles and Woolworths must supply their fresh produce vendors with comprehensive projections of their supply needs.
These supermarkets also need to offer more clarity on their weekly bidding procedures that determine price and quantity agreements with suppliers.
There should be more openness concerning the wholesale prices of fresh produce at supermarkets.
ALDI, Coles and Woolworths must not have the authority to single-handedly cut agreed-upon prices or quantities of wholesale fresh produce.
Transparency is crucial for farmers who sell their produce via middlemen.
Producers supplying supermarket-branded fresh goods should receive prompt confirmation of orders from retailers. Producers must have the option to label their own fresh goods. The disclosure regarding rebates paid by suppliers to supermarkets needs to be clearer.
Finally, Coles and Woolworths should elucidate how they use contributions from suppliers towards their proprietary retail media services.
In February 2025, ACCC chair Gina Cass-Gottlieb outlined the agency’s commitment to make retail pricing, merger reforms and competition challenges its priorities for the fiscal year 2025/26.
