Coles has countered allegations of price gouging and profiteering, clarifying in a Senate inquiry submission that much of its food and grocery price hikes can be attributed to increased supplier costs, leaving its profit largely stable.
The retailer outlined its adherence to Australia’s competition and consumer regulatory framework and emphasised the host of factors affecting grocery pricing, from taxes to transportation, labour costs, supply chain disruptions and natural disasters.
Coles also highlighted the significant number of price increase requests it receives from suppliers, a result of rising inflation and global commodity prices. Yet the company maintained that its pricing strategy has remained below inflation levels.
Supermarket pricing Senate inquiry
This response comes amidst public scrutiny over supermarket pricing strategies, with Coles and Woolworths facing accusations of exploiting cost of living pressures for profit.
The Senate inquiry — supported by the Greens and the Albanese Government — aims to dissect the market power and pricing practices of Australia's supermarket giants.
Coles' submission detailed the spike in supplier cost increase requests over recent years, emphasising its efforts to manage these demands without proportionately raising shelf prices.
Coles noted its net profit over the past five years had remained “largely stable” despite inflationary pressures and global events impacting business costs.
“That is, while supermarket prices may have increased in our stores, this did not translate to greater net profit after tax in fiscal 2023.”
The supermarket giant stressed its commitment to supporting suppliers as well as the broader community, noting that a significant portion of its profit is returned to shareholders as dividends, many of whom are individual investors.