Australian supermarkets need more competition, but would government stores actually work? | Allan Fels
News Source
β’Wed, 07 Oct 2026 00:06:59 GMT
π° What Happened
Former competition chief Allan Fels says Australian supermarkets need more competition, but he questions government-owned stores. He says the Greens plan comes from a real problem. Still, he doubts a state-run chain is a workable answer. He notes a government store would have to compete on price, quality, convenience and range.
π The Backstory
Coles and Woolworths hold about two-thirds of national grocery sales. Aldi has about 9%. In such a concentrated market, shoppers face high prices and suppliers say they lack bargaining power. Max Chandler-Mather of the Green Institute calls public ownership common sense, comparing it to Medicare. Fels points to the huge barriers of building a nationwide grocery chain from scratch.
π― Why It Matters
This affects what people pay for food and whether farmers get a fair price. It is a key part of the debate over the cost of living.
Former competition chief Allan Fels says Australian supermarkets need more competition, but he questions government-owned stores. He says the Greens plan comes from a real problem. Still, he doubts a state-run chain is a workable answer. He notes a government store would have to compete on price, quality, convenience and range.
Coles and Woolworths hold about two-thirds of national grocery sales. Aldi has about 9%. In such a concentrated market, shoppers face high prices and suppliers say they lack bargaining power. Max Chandler-Mather of the Green Institute calls public ownership common sense, comparing it to Medicare. Fels points to the huge barriers of building a nationwide grocery chain from scratch.
This affects what people pay for food and whether farmers get a fair price. It is a key part of the debate over the cost of living.