Annual profit is more than $1bn for Woolworths and Coles. How do they set prices and can they justify rises?

Farmers and consumers alike are sharing their frustration amid the cost-of-living crisis as a government inquiry into the Australian supermarket giants looms

Australian supermarkets breezed through the pandemic, increasing profits and shareholder returns even as living costs surged, all while avoiding the scrutiny faced by their overseas counterparts.

But a looming parliamentary inquiry, and a revitalised political interest in the discrepancy between prices paid to farmers and those charged by supermarkets, means the sector has been thrust into the spotlight.

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Woolworths issues recall for Christmas mince pies over potential metal contamination

Supermarket says there have been no complaints and the New South Wales recall is being done as a ‘precaution’

The chance of metal contamination has led to supermarket giant Woolworths issuing a recall in New South Wales for a batch of a common Christmas treat.

Woolworths said the affected product is Shortcrust Summer Berry Mince Pies, sold in six-packs, with a “best before” date of 13 June 2024.

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Coles, Woolworths and Aldi ‘responsibly sourced’ salmon labels may be misleading, watchdog told

Environmental groups allege some of the supermarkets’ salmon is from Tasmanian farms reportedly having ‘catastrophic’ impact on ancient Maugean skate

Major supermarkets may be misleading consumers that their salmon products are responsibly sourced as some is produced in Tasmanian farms that are “far from sustainable”, environmental groups say.

The Environmental Defenders Office, acting on behalf of four environmental groups, has made a complaint to the consumer watchdog, urging it to investigate whether “responsibly sourced” labelling on seafood products and promotional material used by Coles, Woolworths and Aldi have broken consumer law by misleading consumers.

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Coles and Woolworths to face Senate scrutiny amid claims of profiteering

Greens win support for inquiry into effect of market concentration on food prices and pattern of major chains’ pricing strategies

Australia’s big supermarkets will face fresh scrutiny with a Senate inquiry to investigate their market power and pricing decisions, amid concerns they have profiteered during an inflationary period marked by fast-rising food costs.

The Greens have secured cross-party support to set up the inquiry which will examine the effect of market concentration on food prices and the pattern of pricing strategies employed by the major chains, Coles and Woolworths.

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Woolworths’ free naturopath consultations raise concerns among peak health bodies

Exclusive: experts fear the cost-of-living crisis is forcing people to forgo evidence-based healthcare

Hundreds of free appointments with naturopaths have been booked through Woolworths subsidiary HealthyLife, as peak health bodies warn people are forgoing more expensive, evidence-based care due to the cost-of-living crisis.

In March HealthyLife launched telehealth consultations with general practitioners, dieticians, nutritionists and in-house naturopaths, alongside home delivery of pharmaceutical products through its partner SuperPharmacy.

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Coles and Woolworths say their profits are modest – but does that stack up?

The two big Australian supermarkets under scrutiny at a federal parliamentary inquiry into economic dynamism

When a representative of Australia’s biggest supermarket chain answered questions at a parliamentary committee about profits, the response created an impression that margins were modest and, if anything, falling.

The assertion appears to rub against data that shows Woolworths and Coles have greatly increased profits derived from grocery items during the inflationary period and related cost-of-living crisis.

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Big W ditches in-store announcements that supported Indigenous voice to parliament

Discount chain, owned by Woolworths, says decision is due to feedback from staff and customers

Big W has abandoned in-store announcements that expressed support for the Indigenous voice to parliament, citing responses from customers and staff.

The discount chain, owned by supermarket operator Woolworths, recently used an acknowledgment of country across its stores that affirmed support for the constitutional change to be voted on at an upcoming referendum.

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Australia should increase competition to fight ‘excessive pricing’ by supermarkets, Rod Sims says

Former regulator head’s comments follow Guardian Australia analysis which shows Coles and Woolworths increased profit margins during cost-of-living crisis

The former competition watchdog head Rod Sims says Australia’s big supermarkets have likely used their market power to increase prices higher than necessary during a cost-of-living crisis and that the government should consider reforming merger laws to limit their dominance.

Sims, who retired as the chair of the Australian Competition and Consumer Commission (ACCC) last year, said Coles and Woolworths have little to worry about when making pricing decisions because they control two-thirds of the market.

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More stockpiles of soft plastics from failed REDcycle recycling scheme uncovered

Dozens of storage sites found across Australia but estimated amount of plastic reportedly falls from 12,350 tonnes to 11,000

New stockpiles of soft plastics from the failed REDcycle recycling scheme have been uncovered as the work to develop an alternative program continues.

The program was wound up in November 2022 after it emerged that plastics consumers had returned to supermarkets to be recycled were instead put into storage.

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Woolworths expands self-checkout AI that critics say treats ‘every customer as a suspect’

Supermarket says cameras used to detect accidental wrong scans while experts say the technology is ‘punitive’ and call for reforms to protect privacy

Woolworths has expanded the use of technology that films customers scanning items at self-checkouts to 110 stores in three states, as critics say the functionality could make people feel they are under constant surveillance.

For the past year, Woolworths has trialled new self-checkouts with cameras installed overhead to observe customers scanning items. The company said artificial intelligence is used to detect when items are not scanned correctly, with footage of the scan recorded and played back to the customer instructing them to re-scan.

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Coles and Woolworths ordered to dump more than 5,200 tonnes of recycled soft plastic in landfill

NSW environment officials alert Fire and Rescue over concerns plastic is being stored dangerously following suspension of the REDcycle scheme

Supermarket giants Coles and Woolworths have been ordered to dump more than 5,200 tonnes of soft plastic – currently being stored at warehouses across New South Wales – into landfill.

The NSW Environment Protection Authority is concerned that huge amounts of soft plastic are being dangerously stored at 15 locations due to the suspension of botched recycling initiative REDcycle.

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Coles recalls more spinach products as fears over potential contamination widen

Supermarket warns over 11 own-brand products, following earlier recalls by Woolworths and Costco

Coles has recalled 11 own-brand spinach products as the scare over contamination of fresh produce in Australia widens.

On Saturday the supermarket announced it was recalling the products as a precaution because health authorities had advised that some spinach “may potentially be contaminated with unsafe plant material”.

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Woolworths says 2.2 million MyDeal customers’ details exposed in data breach

MyDeal chief executive apologises and says incident is being investigated

Millions of customers’ details have been exposed in a major data breach at an online shopping site owned by the retail giant Woolworths.

The company says a compromised user credential was used to get access to customer information from the MyDeal website.

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Get smashing: avocado growers want consumers to buy more amid fruit glut

Fruit oversupply plus rising cost of fertiliser, fuel and freight means producers are going backwards, Avocados Australia boss says

Avocado growers are pleading with customers to buy more of the fruit, as a glut in supply sends prices to a historic low.

Across the country, the oversupply of avocados has seen prices drop dramatically – with the fruit going for as little as $1 in some stores.

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Covid rapid antigen test supplier fined more than $100,000 by TGA for ‘non-compliance’

Hough Pharma, which supplies home tests to Coles and Woolworths, allegedly failed to provide reports or appropriate customer support

A major supplier of Covid-19 rapid antigen tests to Coles and Woolworths has been fined $106,560 for allegedly failing to keep Australia’s drug regulator informed about the safety and performance of the tests.

Hough Pharma Pty Ltd was issued multiple infringement notices by the Therapeutic Goods Administration (TGA) on Thursday for what the agency described as “serial non-compliance” with regulatory requirements.

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Woolworths suspends orders from South Australia meatworks allowed to operate with Covid-infected staff

Abattoir had exemption from state government but supermarket giant halted orders for product after discussion with ACTU

Woolworths has suspended supplies from a South Australia meatworks that was given state government approval to operate while some staff were Covid positive.

Brad Banducci, chief executive of the supermarket giant, decided to halt taking product from the Teys Australia abattoir near Naracoorte after a telephone hook-up on Sunday with Michelle O’Neil, president of the Australian Council of Trade Unions.

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Australians urged to plan ahead for Christmas shopping amid ‘dramatically bad’ global supply chain crisis

Covid shutdowns of major international ports are putting extreme pressure on retailers to fill orders and keep shelves stocked

Australians have been warned not to leave their Christmas shopping until the last minute with the global supply chain crisis leaving retailers struggling to fill orders and keep shelves stocked.

The “dramatically bad” global supply chain situation in Asia could also see major Australian retailers dumping Black Friday sales as they are left with limited stock.

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Call for Reconciliation Australia to pull Woolworths support over Darwin Dan Murphy’s

Indigenous leaders want retailer held accountable over planned alcohol store near three dry communities

Aboriginal and Torres Strait Islander community and health leaders want Reconciliation Australia to revoke its support for Woolworths over the retail giant’s plans to build one of Australia’s largest alcohol stores in Darwin, near three dry Aboriginal communities.

A letter signed by health, legal, domestic violence and community group leaders draws comparison to Rio Tinto, which was dumped by Reconciliation Australia over the destruction of a 46,000-year-old Aboriginal heritage site in the Pilbara, which said Rio’s actions were a “breathtaking breach of a respectful relationship”.

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Sydney coronavirus toilet paper stoush: mother and daughter found guilty

Meriam Bebawy took the law into her own hands after another shopper grabbed a packet of toilet paper from her trolley at Woolworths, a magistrate has found

A Sydney magistrate has likened a coronavirus-fuelled stoush over toilet paper to a rugby league bust-up as he found a mother and daughter guilty of affray.

Health worker Meriam Bebawy, 23, and her daycare operator mother, Treiza Bebawy, 61, have been sentenced over an altercation with another woman at a Woolworths store in Chullora on 7 March.

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Long queues as Australian supermarkets limit customers to avoid overcrowding in lead up to Easter

Social media posts have shown lines stretching hundreds of meters as Coles, Woolworths and IGA enforce physical distancing

Long lines have formed outside supermarkets after Coles, Woolworths and IGA began limiting the number of customers inside stores in a bid to allow physical distancing and keep flattening the curve of Covid-19 infections during the Easter rush.

The Thursday before Easter is traditionally one of the busiest days for supermarkets, as people stock up for the weekend.

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