Australia’s two biggest supermarkets have been accused of misleading customers and bleeding their suppliers dry.
Woolworths and Coles control 65 per cent of the grocery market and each reported profits of more than a billion dollars last year.
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As the cost of groceries pushes some families to breaking point, the duopoly is in the spotlight over claims they’re using their power to hike prices and pressure suppliers.
“The supermarkets know that fruit and vegetable is perishable. If you don’t sell it, it’s worthless,” National Farmers’ Federation Horticulture Council spokesman Jeremy Griffith said.
“And as a result they can exploit that by offering rock bottom, take-it-or-leave-it prices.”
Woolworths boss Brad Banducci walked out of a heated Four Corners interview while being grilled on whether there is enough competition in the Australian market.
Banducci cited the likes of Coles, Aldi, independents and Amazon in arguing they operate in an “incredibly competitive market”.
He was then pressed further by reporter Angus Grigg, who was preparing to mention comments made by former Australian Competition and Consumer Commission chair Rod Sims.
But Banducci cut him off, saying: “(He’s) retired, by the way. I‘m just saying the world has got much more competitive.”
Banducci conceded “I shouldn’t have said that”, but walked away from the chat when it was pointed out to him the comments were on the record.
He did return later to continue answering questions.
Coles didn’t get off lightly either during the piece aired on Monday, with leaked emails revealing the supermarket giant has been exchanging price rises with suppliers for lump sum payments.
Coles is defending its pricing, arguing the company’s profit margin last year was 2.6 per cent, meaning for every $100 a customer spends, Coles makes $2.60 in profit.
But they’ve also been accused of misleading customers.
Consumer advocacy group CHOICE says both major supermarkets are guilty of dodgy and confusing specials, with calls made for tighter regulations.