Anthony Albanese backs new supermarket chain to challenge ‘Colesworth’

The Prime Minister has ruled out forcibly breaking up major supermarket chains, quipping that “we’re not the Soviet Union.”

But he’s flagged measures to encourage new entrants into Australia, which could involve working with the states to reduce the ability of other players to “land bank” and block or oppose new supermarkets on planning grounds.

In recent years there was speculation Amazon Fresh could be established in Australia – the supermarket chain dubbed “cashless, cashierless, and creepy”.

Customers simply walk out the door without removing their wallet to pay.

The company instead relies on store CCTV recording every item taken off the shelf.

A credit card linked to a customer’s Amazon account is then automatically billed for purchases.

But to date, Amazon Fresh has not appeared in the Australian context and another German retailer Kaufland that was tipped to open at 12 locations around the country dumped those plans five years ago.

Speaking on ABC radio on Friday, Mr Albanese was asked, “What’s your view, are Coles and Woolies ripping people off?.”

“Well, quite clearly they have excessive market power,’’ Mr Albanese replied.

“We have effectively a duopoly in large parts of Australia. In some places, IGA or Aldi or other supermarkets will play a role, but overwhelmingly there is a concentration of power, which is why we have three inquiries at least going at the moment.

“We know that when farmers are saying they’re getting less for their products, that hasn’t necessarily translated through to cheaper prices at the checkout.”

Mr Albanese said one of the solutions he was interested in was encouraging new entrants into the market.

“Well, we certainly will look at any recommendations coming forward of how you would encourage new entrants into the market,’’ he said.

“That would obviously be helpful. The more competition, the way that economics should work, of course, it should lead to lower prices, if people are competing. In many places, of course there’s not a duopoly, there’s a monopoly in some smaller markets. So, the key as well, though, is this voluntary code of conduct where there should be some mandating?”

Earlier, NDIS and Government Services Minister Bill Shorten confirmed Labor wasn’t going to break up Coles and Woolworths.

“Coles and Woolies need to be accountable,” he said.

“We’ll do what it takes.

“We just want to make sure Coles and Woolworths aren’t ripping people off.”

The opposition’s finance spokeswoman Jane Hume said for consumers it was a frustrating situation.

“Enough’s enough,’’ she said.

“But why did it take two years to get to this point? He could have done it a year and a half ago because apparently the cost of living was the number one issue a year and a half ago.

“(There’s) work that can be done with competition for supermarkets, there is no doubt. Why is it that supermarkets are allowed, for instance, to ‘land bank’, which prevents competitors coming into the market? I think that’s something that should be pursued.”