The ACCC's supermarkets inquiry found that Coles, Woolworths and ALDI are some of the most profitable supermarket businesses among their global peers, and that their average product margins have gone up over the past five financial years. The ACCC is the Australian Competition and Consumer Commission, the regulator that polices competition and pricing. Its final report came out on 21 March 2025 with 20 recommendations.
What did the ACCC say about Coles and Woolworths?
The ACCC said aspects of Australia's supermarket sector, which is dominated by Coles and Woolworths, "are not working well and this is leading to poorer outcomes for consumers and suppliers than would be expected in a more competitive market."
None of the 20 recommendations breaks either company up. They include clearer pricing and promotion rules, publishing prices online, notices when a product shrinks in size, and easier planning rules for new supermarkets.
How much power do Coles and Woolworths have over suppliers?
The inquiry found "a significant bargaining power imbalance between Coles and Woolworths and some suppliers", and that the two chains use their buyer power through their trading terms and business processes and practices. The ACCC recommended that retailers should not be able to negotiate out of the core protections in the Food and Grocery Code, that fresh produce suppliers get more information about the weekly tendering process, and that there be greater transparency about the rebates suppliers pay to supermarkets.
Flat White's 20 October 2026 edition reported that over the past year the companies that make your groceries have given Woolworths and Coles a bigger cut of each sale to keep their products on the shelves.
Are supermarket prices still rising?
Yes. The Australian Bureau of Statistics (ABS) measured food and non-alcoholic beverages 3.0% higher in August 2026 than a year earlier. Prices across all groups were up 4.0% over the same period.
Could Amazon change grocery shopping in Australia?
The ACCC said large-scale entry by a new supermarket chain is unlikely in the short to medium term. It pointed out that it took ALDI more than 20 years to reach its current market share of nine per cent.
Amazon has announced an investment of more than AU$750 million in a robotics fulfilment centre in Brisbane, targeted for completion in 2028. Amazon says it will hold up to 15 million of the smaller items sold on Amazon.com.au, such as pantry staples, beauty products, electronics and toys, and process over 125 million packages a year. The announcement describes a warehouse for Amazon's online store and does not describe a supermarket.
From Flat White, Would you give up $50K a year to never commute again?
Sources
Every page below was read on 20 October 2026.
- ACCC, ACCC recommends supermarket reforms to provide better outcomes for consumers and suppliers, 21 March 2025 (profitability among global peers, margins, the bargaining power finding, the 20 recommendations, ALDI's nine per cent share)
- Australian Bureau of Statistics, Consumer Price Index, Australia, August 2026 (food and non-alcoholic beverages 3.0%, all groups 4.0%, year to August 2026)
- Amazon, Amazon is investing AU$750 million in a robotics fulfillment center in Australia (the investment, Brisbane, 2028, 15 million smaller items, 125 million packages a year)
Spotted an error? Correct something.
