ABC Four Corners feature on the Coles/Woolworths grocery duopoly

[submariner]

In Australia, Coles and Woolworths have an effective duopoly on the supermarket landscape. ABC News Australia's Four Corners programme goes in-depth to investigate allegations of price-fixing and the effects on local farmers who supply the two major grocery chains.

It's worth noting that the parent companies of Coles (Wesfarmers), and Woolworths (Woolworths Group) also own retail stores dominating the retail landscape, with Woolworths owning the Woolworths grocery chain and Big W discount stores (similar to a Walmart, minus grocery) and Wesfarmers having a massive retail portfolio including Coles supermarkets, Kmart, Target, Bunnings Warehouse (similar to Home Depot ot Lowe's) and Officeworks (similar to Staples or Office Depot). The latter two retail stores themselves having an effective monopoly in their market segment.

This should be raising massive alarm bells in the US with the Kroger-Albertsons/Safeway merger and *its* potential to impact American consumers as well.

[jamcool]

I wonder why the Australian government hasn’t forced divestitures on these two operators. They do have Aldi down there, how much of a market share does Aldi have?
Is there any interest for other International retailers to get into Oz? Like the Japanese retailers? Costco?

[submariner]

I wonder why the Australian government hasn’t forced divestitures on these two operators. They do have Aldi down there, how much of a market share does Aldi have?
Is there any interest for other International retailers to get into Oz? Like the Japanese retailers? Costco?

I believe the government is investigating options, as there is a huge public outcry at the moment. Currently, the 4 main retailers are Woolworths, Coles, Aldi and Metcash (a wholesale retailer who owns several IGA banner chains) and account for over 80% of the total grocery market.The Woolworths Group is the market leader with a share of 37% of the market followed by Coles 28%, Aldi 10% and Metcash 7%.