The continued political focus on supermarkets is a “distraction” from the broader community and business policies Australians deserve during an election campaign, says the Australian Retailers Association (ARA).
ARA Chief Industry Affairs Officer Fleur Brown says eight taxpayer funded inquiries have failed to find any evidence of supermarket price gouging.
“The ACCC’s findings clearly states that grocery inflation has been driven higher by the cost of wages, energy and fuel,” she says. “Yet instead of hearing how the government will address these issues which significantly affect all Australian retailers and consumers, we unfortunately see more taxpayer-funded deflection.”
Ms Brown says the ARA calls on government to focus on policies that drive down the cost of doing business in Australia, which will have a direct impact on grocery prices and the cost of living for Australian families.
“We need measures that reduce red tape, increase productivity or drive down costs,” she says.
“Tensions about food pricing will always arise during a cost-of-living crisis – as they have globally. Yet despite the enormous challenges faced by the industry, food inflation has remained relatively stable, and household spending on food has declined as a proportion of total expenses.
“Grocery inflation in Australia is lower than many OECD countries. In recent years, Coles and Woolworths net profit margin has remained stable at less than 3¢ in the dollar.
“It’s crucial we have a sensible discussion around the realities of running a large business in a market like Australia – a country perpetually and uniquely challenged by scale issues with a relatively small population and a vast geography.
“We need big business in Australia, and we need our home-grown businesses to thrive, and that means acknowledging the mechanics of large-scale operations.
“Australian supermarkets have been a major part of our resilience response in times of crisis. It’s the supermarkets that step up to support the community during a flood or a bushfire, taking on significant transport and freight costs to keep products on shelves and donating emergency supplies.
“During the pandemic, we saw the vital role our supermarkets played to service communities – a role they have continued to play when natural disasters struck recently in Queensland.
“Australian supermarkets make an enormous contribution to our communities. Collectively they employ more than 350,000 people, pay significant taxes, their shares are owned by local mum and dad investors and superannuation portfolios, and they source much of their product from our own shores.”
