Woolworths executives, including CEO Amanda Bardwell and former CEO Brad Banducci, appeared today before the Australian Competition and Consumer Commission (ACCC) inquiry into the supermarket sector.
Woolworths and Coles dominate the Australian supermarket sector, accounting for 67% of sales nationally, said Naomi Sharp, counsel assisting the ACCC.
The inquiry is investigating allegations of "land banking" — where Woolworths is accused of buying up land and not developing it to block competitors from building new stores.
Land banking involves purchasing parcels of land with the strategic intent of holding onto them without immediate development. This practice can restrict market competition by preventing rival companies from acquiring prime locations for their businesses. By controlling key sites, companies can limit the opportunities for competitors to enter or expand in a given market area.
Woolworths denied these allegations, stating the land was held for "strategic reasons".
Woolworths Group's Director of Property, Ralph Kemmler said about land banking: “There could be a number of strategic reasons for which these properties were held but not developed.”
The ACCC enforces laws that promote competition and protect consumers in Australia. It investigates practices that harm market competition, ensuring businesses operate fairly and transparently. Through inquiries like this one, the ACCC seeks to prevent anti-competitive behaviour that disadvantages consumers and other businesses.
On competition, Bardwell said: “It is fiercely competitive. We are a substantial part of the market overall, which is dramatically changing and we compete every single day for customers to choose to shop with us.”
Bardwell said about pricing: "Certainly (we) want to make sure that customers, if they’re choosing between the two of us, that they choose Woolworths."
The inquiry will continue with more Woolworths executives testifying tomorrow, followed by Coles executives later this week. The ACCC's final report is expected in February 2025.