Australia Poised to Open New Supermarket Chain to Challenge ❛Colesworth❜

We're sure you've had your fair share of chats over the past year about the ever-rising prices of groceries. The dominance of 'Colesworth' in the supermarket scene isn't exactly breaking news, as many Australians rely on either Coles or Woolworths for their weekly shopping needs, but it feels as though the tides might be about to turn. 

With the cost of living crisis enduring and sentiments toward Coles and Woolworths taking a hit, Prime Minister Anthony Albanese has thrown his support behind the idea of bringing a new supermarket chain to Australia to shake up the market. The goal? To inject some healthy competition back into shopping aisles across the nation.

Here's what you need to know. 

Australia Poised to Open New Supermarket Chain to Challenge 'Colesworth'

In response to concerns about potential 'price gouging' during the current cost-of-living challenges, both Coles and Woolworths have been summoned to appear before a Senate inquiry. Established just last December, this Federal Senate Inquiry is delving into the effects of market concentration on food prices and examining the pricing tactics employed by major supermarket chains.

Mr. Albanese highlighted on ABC radio last Friday the concerning dominance of a few supermarkets, emphasising their "excessive market power." He pointed out the prevalence of a duopoly in many regions across Australia, with only a handful of alternatives such as IGA or Aldi making an impact.

He also noted the disconnect between the prices farmers receive for their products and the prices consumers see at the checkout. Despite farmers earning less, this hasn't necessarily translated into cheaper prices for consumers (something we're sure every family can attest to!).

A Fair Solution? 

The Prime Minister has dismissed the idea of forcibly breaking up Coles and Woolworths, but has expressed interest in measures that would encourage new supermarkets to enter the Australian market.

He mentioned that these measures could involve new businesses working with states to reduce the ability of existing players to "landbank" and prevent new supermarkets from opening.

Colesworth Weigh In

Coles has expressed an understanding of the challenges Australian households are facing regarding the cost of living.

"As one of Australia's largest supermarkets, we take seriously our core role in providing essential goods to Australians," their statement affirms.

"We are always looking at ways to deliver value to our customers and are committed to helping lower the cost of living."

Despite nationwide price adjustments, Coles clarified that these changes did not result in increased profits for the company, even with their reported $1 billion net profit in the last financial year.

So, watch this space! Here's hoping for some relief on the purse strings in the not-so-distant future... 

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