“Coles and Woolworths Surge Ahead: A Look at Australia’s Grocery Duopoly’s Record Profits” 2024-10-06

Coles and Woolworths have significantly outperformed their competitors in terms of profitability, as evidenced by recent data. In 2008, the profits of Australia's grocery giants were comparable to those of supermarkets abroad. However, by 2024, they have risen to become some of the most profitable in the world. Sixteen years ago, the Rudd government initiated an inquiry into the supermarket industry due to growing public dissatisfaction with grocery prices. At that time, the market was already heavily concentrated, with Coles and Woolworths holding a combined 65% market share. chain was struggling, and Aldi was just beginning its expansion in Australia. The landscape has since changed dramatically, with Coles and Woolworths solidifying their dominance in the grocery sector.

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Question 1: How have Coles and Woolworths' profits changed from 2008 to 2024?

Coles and Woolworths' profits have significantly increased, positioning them among the highest in the world by 2024, compared to being in line with overseas supermarkets in 2008.

Question 2: What was the market share of Coles and Woolworths in the supermarket sector sixteen years ago?

Sixteen years ago, Coles and Woolworths held a collective market share of 65% in the Australian supermarket sector.

Question 3: What prompted the Rudd government to order an inquiry into the supermarket sector in 2008?

The inquiry was prompted by rising public discontent regarding grocery prices at that time.

Question 4: How did the competitive landscape of the supermarket sector look in 2008?

In 2008, the supermarket sector was highly concentrated, with Coles and Woolworths dominating the market while competitors like Franklins were declining and Aldi was just beginning its expansion in Australia.