ACCC Discovers ‘Limited Motivation’ for Coles and Woolworths to Compete Aggressively on Pricing; Margins Increase
‘Limited incentive’ for Coles and Woolworths to compete vigorously on price, and margins have risen, ACCC finds
March 25, 2025
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The findings from the ACCC highlight a significant concern regarding competition in the Australian grocery market. With limited incentive for Coles and Woolworths to engage in fierce price wars, it suggests that consumers may not be benefiting from the pricing dynamics one would typically expect in a competitive landscape. Rising margins could indicate that these companies are prioritizing profitability over delivering value to customers.
This scenario raises questions about market structure and whether there might be a need for regulatory intervention to promote competition. Consumers could potentially face higher prices and fewer choices if the current trend continues. It’s essential for the ACCC to monitor these developments closely and consider measures that encourage greater competition, ultimately ensuring that consumers can access the best deals possible. What are your thoughts on how this could impact shopping habits and potential responses from these major retailers?