Mandatory Code of Conduct alone not enough to give Australian shoppers a better deal at the checkout

24 June 2024

“We welcome today’s announcement of enforceable fines on abuse of supermarket power, but concentration of market power needs more than a regulatory stick. We need an environment that encourages competition from a diverse range of businesses models. There is plenty of evidence from overseas markets that co-operatives and mutuals can have a powerful competitive impact, providing consumers and suppliers with more choice and fairer outcomes,” said BCCM CEO Melina Morrison.

“In Germany, two of the three largest retailers are co-ops with a combined turnover of $US142 billion, while in France the largest supermarket group, E. LeClerc is a co-op. Italy’s largest supermarket chain, Conad, is also a co-operative with turnover of $US20.1 billion. In the UK, The Co-operative is a well-known high street chain of supermarkets. That’s solid evidence of the trust that communities elsewhere in the world place in businesses structured as co-ops.

“With 134 co-ops now active in the Australian retail sector (and a combined gross revenue of $1.6 billion in 2023), the BCCM believes there is considerable scope to expand the sector and provide greater competition and choice for consumers.

“Nearly 80 per cent of Australia’s existing co-ops are located away from metropolitan areas, supporting regional communities with essential services, generating vital employment, and retaining wealth in local economies.

“As the march of supermarket dominance in every country town and region continues unabated, we need regulation and legislation that helps co-operatives in retail to compete on a level playing field and provide much needed diversity.”