Coles chairman James Graham is disappointed the cost of living debate has been politicised against supermarkets

Coles chairman James Graham has raised eyebrows after accusing Aussies of using the cost of living crisis to turn on supermarkets.

Coles chairman James Graham has raised eyebrows after saying the cost of living crisis had been “politicised” with anger unfairly directed at supermarkets.

Speaking at the company’s annual general meeting in Melbourne on Tuesday, Graham said he was disappointed over the politicisation of cost-of-living issues and believed supermarkets were being unfairly targeted as costs soar across multiple sectors.

Graham reiterated the supermarket giant’s commitment to regaining customer trust amid growing scrutiny over grocery prices, which has proven to be an uphill battle given that Coles recently reported a 2.1 per cent year-on-year profit of $1.1 billion in 2024.

Those gargantuan profits come as property and rent prices surge through the roof, leaving many young families on modest incomes in the lurch.

Graham, who jumped-ship from Wesfarmers into a $700,000 role in 2018, acknowledged the difficult economic conditions over the past year and blamed rising supplier costs for the supermarket’s price rises.

Over 40 per cent of Aussie households now say they have struggled to afford household basics in the last three months.

Ill-feeling toward the supermarket has only intensified in recent months with the Federal Court action against both Coles and Woolworths, where they face accusations of offering misleading discounts.

But Graham insists the supermarket has “always been sensitive” to the impact of grocery prices on households.

“We’ve always been sensitive to the impact of the economic climate on households, and in this context, it’s been disheartening to see cost-of-living concerns being politicised and directed at the supermarkets,” Graham told shareholders.

“This stands in stark contrast to the cooperative approach we saw from governments and regulators during the Covid-19 lockdowns.”

The chairman also stressed the value of constructive collaboration between business and government.

Amid mounting political pressure, Coles and its major competitor, Woolworths, have faced demands to lower grocery prices. Earlier this year, the Australian Competition and Consumer Commission (ACCC) was tasked by the federal government to investigate the market power of Australia’s “big two” major supermarket chains.

The regulator’s investigation has led to legal action alleging the supermarkets misled customers with “illusionary” promotions on everyday items.

Coles has pledged full co-operation with the inquiries, but Graham believes some of the scrutiny reflects a wider desire to address the more complex issues stemming from inflation.

He pointed to the ACCC’s recent findings, which showed a 24 per cent rise in the cost of a basket of food and non-alcoholic beverages in the five years leading to June 2024.

Graham, who jumped-ship from Wesfarmers into a $700,000 role in 2018, acknowledged the difficult economic conditions over the past year and blamed rising supplier costs for the supermarket’s price rises.

Graham said the figure was actually lower than price hikes seen New Zealand, the UK, Canada, and the US.

Graham stressed that Coles would continue working hard to “do the right thing,” as the supermarket navigates ongoing inquiries.

Chief executive officer of Coles Supermarkets, Leah Weckert, acknowledged struggling Aussies in her address to shareholders at the AGM on Tuesday.

“We know that the current cost-of-living environment is tough for Australians, particularly as increasing household costs make it more difficult to balance the household budget,” she said.

“This means our commitment to delivering value has never been more important. With this in mind, we have made significant investments in our value offering over the past 12 months.

“Through our value campaigns, our Weekly Specials, our extensive Exclusive to Coles and Exclusive Liquor Brand portfolios, as well as our loyalty programs and collectibles campaigns, we have been able to help customers fit more into their weekly budget.

“Flybuys continues to be a favourite among Australian households and remains key to helping us deliver added value to our customers. In FY24, Flybuys active members increased by 5.3 per cent to 9.5 million, and more than two million members redeemed points

for the first time at Coles, demonstrating the program’s growing impact.”

Meanwhile an anonymous Coles worker accused the supermarket giant of “gaslighting” its customers into paying more for everyday items this week.

The woman uploaded a video to TikTok following an awkward encounter with an angry customer while working at her local supermarket.

According to the video, the shopper approached the Coles worker to complain about the increasing price of a packet of Tim Tams.

It was after they spent $7.50 for a big packet of the sweet biscuits, before realising they could have purchased smaller packets for $3, which would have been better value for money.

Australia’s major supermarkets are under the pump.

The customer then reportedly told the woman: “Whoever does the prices at the store should be ashamed of themselves.”

The woman explained that individual supermarkets do not determine the price of an item on the shelf, it’s a job left for the supermarket’s head office.

She has since urged shoppers to do further research into an item before committing to a purchase.

“As a collective, as people, as human beings, we need to start looking at those type of things and looking at grams and seeing what is worth our money,” she said. She added while “$7.50 for Tim Tams is absolutely crazy” and the idea of working for the supermarket “sucks”, the woman explained it wasn’t fair for her to bare the brunt from customers, as she was simply doing her job.

“All I’m doing is earning money so I can pay my bills so I can afford to take my daughter to daycare,” she said.

With the costs increasing dramatically over the past few years, more than 40 per cent of Aussie households now say they have struggled to afford household basics in the last three months, while over half of our population say they will struggle to pay an essential bill over the same period.