Why a Greens’ plan for 624 public supermarkets to take on Woolies and Coles just doesn’t add up
Inspired by New York, a Greens’ research thinktank is proposing a new national chain of public supermarkets. An economist explains the gaps in its $25 billion cost.
The Greens' proposal, backed by the Green Institute's research think tank, suggests that the Australian government should take over 200 supermarkets owned by Woolworths and Coles, in order to create a national chain of 624 publicly owned supermarkets. This initiative aims to reduce household grocery bills by 22%, or approximately A$60 per week for an average family of four.
The institute claims that Fair Go Grocers could become self-sustaining within six years, despite the projected cost of A$25.1 billion over five years – more than the pharmaceutical benefits scheme currently costs the federal government annually. The plan to challenge the Coles-Woolworths duopoly and cut grocery prices is not yet endorsed by the Australian Greens, but new party leader David Shoebridge supports the idea.
Recently, New York Mayor Zohran Mamdani announced plans to establish five public grocery stores, one for each borough in New York City, with the first opening in the Bronx next year and the rest by 2029. However, the economic feasibility of Fair Go Grocers is questionable. The proposal's funding gaps, difficulty in scaling up at a faster rate than Aldi, and the challenge of maintaining lower prices while paying suppliers more are major concerns.
The Greens proposal could ultimately fail to outcompete the giants of Coles and Woolworths due to these significant economic gaps.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
