Why Coles and Woolies should be in public hands   
March 2, 2026
Green Left Weekly

Coles’ ‘down down’ promotion has been revealed as a price-gouging scam.
With millions already struggling in a cost-of-living crisis, one of the supermarket giants, Coles, is finally being investigated.   

The Australian Competition and Consumer Commission (ACCC) has taken legal action against Coles, accusing it of manipulating prices to make false claims that products are on sale, despite prices going up.

See also
Josh Cullinan calls for state-owned supermarket to reduce prices, break the duopoly
Will Labor act on supermarket duopoly price gouging?

It found that Coles would raise prices significantly for a short time, then reduce them to a sum that was still above the original price, while claiming it was discounted.   

For example, Coles sold baby formula for $18, then temporarily lifted the price to $24, only to reduce it to $21 and claim the price was “Down, down”.

People noticed the $3 price hike and the overall dodgy practice because they are keeping a close eye on their budgets. Some who saw the scam have submitted a class action lawsuit against Coles. Soon after, the ACCC launched its legal action.

Woolworths has also been found to use some of the same dodgy practices and is facing similar legal action from the ACCC later this year.   

This makes the ACCC case doubly important, but it also calls for a change of approach. Why are Coles and Woolworths allowed to control an enormous 80% of the grocery market? Third place ALDI has about 9%.

It means people have limited grocery market options, particularly in regional and remote areas, which may only have one supermarket.

Woolworths has more than 1100 stores across the country, while Coles has more than 850. This does not include other subsidiaries, such as Dan Murphys, Liquorland and Big W.

These dodgy “sales” are not the only way the duopoly rip people off. The Australia Institute found that Woolworths and Coles coordinated their “sales” on various products, to avoid direct competition.

This price gouging has allowed both corporations to post massive profits: $1.5 billion for Woolworths and $1.2 billion for Coles in the first half of the financial year. This is a rise of 10% and 15%, respectively, on the previous year and puts them among the world’s most profitable.

Such overwhelming market dominance hands Coles and Woolworths CEOs enormous power to manipulate prices. Meanwhile, up to 20% of households are regularly skipping meals, according to a 2025 report.

Coles is also under fire for its high-tech surveillance, including CCTV cameras, “smart” exit gates and AI technology that creates a unique ID for every person in the store. It has partnered with Palantir, the United States-based tech/surveillance company with links with the US military, Immigrations and Customs Enforcement and the Israel Defense Forces. 

New York City Mayor Zohran Mamdani campaigned for publicly owned supermarkets to tackle food insecurity and reduce prices. He said the US$140 million in tax breaks and incentives that go to private supermarket companies could instead be redirected to set up a publicly owned supermarket in each city borough.

Here, it would be simpler for the supermarket giants to be taken into public hands to ensure that food and other basic goods remain affordable and profits be redirected into improving supply and distribution.

Removing the profit motive would allow publicly run supermarkets to sell products at close to cost price. Farmers and food producers would be able to negotiate fairer deals, instead of being held over a barrel by the conglomerates. Coles and Woolworths workers, who are underpaid and overworked, could be fairly paid and their conditions improved.

A publicly owned supermarket run democratically would also allow workers and customers to have a real say over decisions on goods and pricing.

Green Left has long campaigned for critical industries, such as energy and water, to be returned to public hands. Putting supermarkets into public hands makes just as much sense. We all need to eat.

Public ownership experiment did not work out well in USSR.

NO

But they should be more accountable and better employers.

The ACCC is taking Coles to court for price gouging.  Then I think sometime in April it will be wollies turn.      

How many supermarkets will be fined for price gouging?.   

Yes well said Bobby, and as usual right again.   

Then again though, we don't seem to complain enough about CEOs big fat pay packets and bonuses.    

Yes Bobby and how many poor workers were being ripped off on those farms, with poor wages and conditions?.