Coles and Woolies among the most profitable in the world...

If you’ve ever felt like you’re paying too much at the supermarket checkout, you’re not alone. A long-awaited report from the Australian Competition and Consumer Commission (ACCC) has confirmed that Australia’s big supermarkets—Woolworths and Coles—are among the most profitable in the world. And guess what? Their dominance isn’t going anywhere.

The report found that grocery prices have jumped 24% in the past five years, yet supermarkets aren’t passing on savings to customers when their costs go down. But—and this is a big but—the ACCC stopped short of calling it price gouging or labeling the industry a duopoly.

What’s in the ACCC Report?

Spanning over 400 pages, the report didn’t call for extreme measures like breaking up Coles and Woolies or hitting them with fines, but it did call out:

• Shrinkflation – where products get smaller but prices stay the same.

• Confusing promotions – making it harder for customers to tell if they’re getting a real deal.

• Price transparency – supermarkets should be clearer about pricing and discounts.

• Zoning laws – making it easier for new players to enter the market.

• Supplier protections – helping farmers and smaller suppliers get a fairer deal.

What’s the Government Doing?

The federal government welcomed the report, backing all recommendations “in principle”. PM Anthony Albanese said his government wants "a fair go for families at the checkout and a fair go for farmers at the gate.” Treasurer Jim Chalmers added that Aussies "aren’t mugs" and deserve better prices.

They’re putting $2.9 million over three years into helping suppliers push back against the supermarket giants. This follows a $30 million boost for the ACCC to keep supermarkets in check.

Supermarkets Under Fire, But Still Defending Themselves

Woolworths controls 38% of Australia’s grocery market, while Coles holds 29%. ALDI has 9%, and independent supermarkets (like IGA) just 7%. The ACCC said that Woolies and Coles hold all the power, making it harder for new competitors to enter the market.

They even own over 150 undeveloped sites meant for future stores—raising concerns that they’re blocking competition by “land banking.”

Coles, however, hit back, saying the Australian grocery sector is “highly competitive”, with Amazon, Costco, and ALDI growing fast. It also warned that too much regulation could increase costs rather than lower them.

What’s Next for Shoppers?

The ACCC suggested a few changes that could actually help customers, including:

• Supermarkets publishing all prices online for easier price comparisons.

• A new API for third-party developers, so apps could track and share live supermarket prices.

• Clearer labeling on discounts and shrinkflation, so shoppers aren’t misled.

Retail expert Professor Gary Mortimer said the report wasn’t as damning as many expected but could still lead to fairer pricing, especially in regional areas where groceries are significantly more expensive.

Woolies and Coles aren’t going anywhere, and while the report calls for better transparency, there’s no major crackdown happening just yet. But with government backing and growing public frustration, we might finally start seeing more competition, better deals, and fairer prices at the checkout.