A six-month investigation by Breslin Media Network has uncovered a systematic pattern of conduct by Australia’s two supermarket giants — Coles and Woolworths — that is driving independent grocery retailers out of business through a combination of exclusive supplier agreements, strategic store placement, and pricing strategies that independent operators cannot match.
Documents obtained under freedom of information laws, combined with testimony from over forty former staff and suppliers, paint a picture of market concentration that regulators have been slow to address despite years of complaints.
What we found
Among our key findings: more than 200 independent grocery retailers have closed in the past three years in areas where one of the majors opened a new store within two kilometres. Supplier contracts obtained by this publication include clauses requiring exclusive supply arrangements that effectively prevent small producers from selling to independent operators.
A former Woolworths regional manager, who asked not to be named for fear of legal action, told Breslin Media Network: “The strategy was very deliberate. You move into an area, you price below cost for six to twelve months until the independent closes, then you normalise pricing. Everyone inside knows what it is.”
Both Coles and Woolworths denied the allegations and declined our request for an on-the-record interview, instead providing written statements describing their businesses as “competitive, innovative and supportive of Australian suppliers.”
The Australian Competition and Consumer Commission said it was aware of the investigation and was reviewing the material we had provided.
