‘Public enemy No.1’: Coles and Woolworths blamed for cost-of-living crisis
Source: The New Daily
Supermarket giants Coles and Woolworths have become “public enemy No.1” as new polling shows the vast majority of Australians say they deserve blame for the soaring cost of living.
The Australia Institute’s Centre for Future Work published a survey of 1014 voters on Thursday about increasing costs, revealing 83 per cent are blaming supermarkets for high grocery prices.
That put them ahead of electricity retailers, who 82 per cent blame for the cost-of-living crisis.
Centre For Future Work senior researcher and report co-author Lisa Heap called the poll “emphatic”, saying Australia’s supermarket duopoly is “on the nose” with the electorate.
“Australians are pointing the finger squarely at supermarkets as public enemy No.1 in the cost-of-living crisis,” Heap said.
“The public’s appetite for increased supermarket competition is unmistakable. Nearly two-thirds of voters see it as crucial for alleviating cost-of-living pressures.
“Australians are now demanding action on supermarket competition with the same urgency as they’re calling for lower utility costs and higher wages.”
It has been a torrid few years for Coles and Woolworths, which are embroiled in a deepening reputational firestorm over high grocery prices and ACCC allegations about dodgy tactics.
A recent consumer survey published by Roy Morgan showed both the major chains have lost their place among the nation’s most trusted brands, with competitor Aldi now ascendant.
They aren’t the only ones.
One of the key findings from the Australia Institute polling is that voters blame a wide range of companies for the cost of living, including banks and energy giants.
But three in five (60 per cent) said groceries were their “most noticed” cost increase, far ahead of utilities, a part of the household budget that has been shielded by public subsidies.
About 64 per cent of voters said they supported government efforts to reduce energy bills, with billions in taxpayer money invested over the past two years to artificially reduce electricity bills.
Just over 70 per cent of voters still partly blame the government for the cost of living though, with more than half saying household finances were “somewhat or much” worse than two years ago.
That underscores why Prime Minister Anthony Albanese is firing a regulatory broadside at corporations before the next election, with supermarkets proving a particular focus lately.
Crackdowns on unit pricing and an inquiry into competition in the grocery sector have featured, alongside funding for consumer group Choice to publish regular reports on grocery prices.
This week the focus has broadened to a much wider range of dodgy business tactics and fees, including debit card surcharges and a range of unfair trading practices like dynamic pricing.
Although the moves have been carefully measured and involve a public review process that will decide the scope of any crackdown, Albanese has framed the policies as cost-of-living action.
The lengthy reviews are also giving the government a chance to make further announcements next year when the federal election is due, with a review on unfair trading practices set to be handed down in mid-2025.
The Australia Institute said the survey results demonstrate that Australians are “aware of the many dimensions of the cost-of-living crisis” and expect action on a range of different issues.
“Respondents want to see supermarket power reduced to reduce the costs of food, however, they also want increases in wages and income support,” researchers concluded.
“As well as regulations on things like utility costs, transit fees, education and health costs.”