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One of Australia’s most recognisable brands came under fire at an SA parliamentary inquiry today as it defended allegations of price gouging.
Woolworths executives appeared before state politicians to address concerns about rising grocery prices, particularly in South Australia.
Despite accusations the supermarket giant was exploiting customers, Woolworths maintained that its prices were decreasing.
Outgoing CEO Brad Banducci tried to suggest Woolworths was not responsible for the high price of groceries in the state.
“Woolworths is a great mechanic for driving prices down in SA, and not driving them up,” he said.
Adelaide grocery prices have risen 16 per cent over the past three years, surpassing all other capital cities.
But Mr Banducci insisted prices were the same across the country.
“We follow national pricing on all life long groceries. So we try to have the same shelf prices everywhere in Australia – including in SA.”
Woolworths Chief commercial Officer Paul Harker shifted the blame to smaller independent grocers, alleging that they charged 10 per cent more than Woolworths.
The inquiry also examined Woolworths’ relationships with growers and wholesalers, but Mr Banducci denied that the supermarket giant held a dominant position.
“I wouldn’t say there is necessarily a power imbalance,” he said.
Woolworths reported a substantial profit of more than $1.6 billion last financial year.
The inquiry will continue in the coming weeks, with other major grocery retailers, including Coles, expected to face scrutiny.
