Anthony Albanese issues warning to big supermarkets amid backlash over prices

The supermarket giants have been issued a major warning from a Anthony Albanese in the wake of an investigation into the sector’s pricing tactics.

Supermarket giants could be stripped of their chains and have them sold off to competitors under powers being pushed by Nationals leader David Littleproud. Picture: NCA NewsWire / Naomi Jellicoe

Coles and Woolworths have been put on notice to “do the right thing” as Anthony Albanese signals he’d be willing to intervene.

Four separate reviews, including a competition watchdog price inquiry, into the conduct of the supermarket chains are currently underway.

Speaking on Perth FM radio on Tuesday, the Prime Minister said he would be “prepared to change some of the rules” based on the outcome of the Australian Competition and Consumer Commission inquiry.

But he insisted public pressure over high prices, paired with backlash Woolies boss Brad Banducci received after he stormed out of an ABC interview, would force the duopoly’s hand before he did.

“One of the things that is happening, I reckon — and last night will add to it, the Four Corners program — is there’ll be pressure on the supermarkets to do the right thing,” Mr Albanese told Perth’s Hit FM radio on Tuesday.

Woolies and Coles have been under pressure in recent months. Picture: NCA NewsWire / Roy VanDerVegt

“Even before there are recommendations — I mean, they know that public opinion matters to their business.”

Politicians from all sides have been heaping the pressure on the supermarket duopoly in recent months, after Coles and Woolworths returned profits that exceeded $1bn last financial year.

The federal government appointed former Labor minister Craig Emerson to lead a review of the food and grocery code last month.

Meanwhile, a Greens-lead senate inquiry and Queensland parliament are also holding its own inquiry into grocery prices.

But Nationals leader David Littleproud says more needs to be done, and urged the government to not wait until the reviews are handed back to consider fresh laws.

He wants the supermarket giants to be forced to sell their chains to competitors in a bid to boost competition.

“We need to come together as legislatures, put aside politics and bring in … powers which would strip some of these big supermarkets of their chains and we may even see some of their stores have to be sold off to competitors to increase competition,” he said.

Four inquiries into supermarket prices are taking place. Picture: NCA NewsWire / Jeremy Piper

“The time for reviews is over. Let’s just get on with it. Not only are farmers hurting but consumers too. We just want fair prices from the farm gate to the plate.”

Coles and Woolworths have previously denied engaging in price gouging.

Both supermarkets were contacted for comment on Tuesday. A Woolworths spokesperson said they had nothing to add.

Coles did not respond.

Opposition Leader Peter Dutton did not repeat his Coalition’s colleague’s view when asked, instead suggesting there needed to be a greater look at the “concentration of market share” within particular areas.

“I suspect that most developers when they’re opening up a greenfields site, already have a relationship with Coles or Woolies,” he told 3AW.

“We know that Aldi, and the bigger footprint of IGA, is very competitive and they are keen for more market share – and again, it’s that competition that will bring the opportunity for prices to come down.”

Originally published as Anthony Albanese issues warning to big supermarkets amid backlash over prices