The ACCC’s final report says Australian supermarkets appear highly profitable by international standards. It states that ALDI, Coles and Woolworths "appear to be among the most profitable supermarket businesses worldwide" and that their product and profit margins increased over the past five financial years.

The final report for the ACCC's supermarkets inquiry has made 20 recommendations after finding that **ALDI, Coles and Woolworths are some of the most profitable supermarket businesses among global peers** and their average product margins have increased over the past five financial years.

The ACCC’s final report found **Australian supermarkets appear highly profitable when compared with their international peers**, ranking among the highest in their peer group. ALDI’s, **Coles’ and Woolworths’ average earnings before interest and tax margins were noted to be “among the highest of supermarket businesses in relevant comparator countries”**. Average net profit after tax margins were similar to Walmart in the United States, Dutch-Belgian Ahold Delhaise, and Tesco in the United Kingdom, but below Canada’s Loblaw supermarkets.

The ACCC’s supermarkets inquiry final report, released in March 2025, states in its summary section: "ALDI, Coles and Woolworths increased their average product margins over the last 5 financial years" and under key findings notes: "ALDI, Coles and Woolworths appear among the most profitable supermarket businesses globally." This is based on ACCC analysis of multiple profitability metrics compared with selected international peers.

The ACCC’s supermarkets inquiry final report (2024–25), released on 21 March 2025, examined profitability and margins of major Australian supermarket chains including Woolworths, Coles and ALDI in comparison with international peers.[1] A Treasury explanatory statement summarising the findings notes that "despite facing higher input costs, Australian supermarkets, including Woolworths and Coles, increased their profitability over this period" and that the industry is an oligopoly dominated by Woolworths and Coles.[8] The statement also records that grocery prices rose rapidly over the last five financial years while margins remained elevated, indicating strong profitability relative to a more competitive market.[8]

Australia's competition watchdog says **Coles and Woolworths are among the most profitable supermarkets in the world**, but admits that little can be done to curb their market dominance. The ACCC has handed its report on Australia's supermarket sector to the Government.

Australia's two largest supermarket chains, **Woolworths Group Ltd. and Coles Group Ltd., control such a large swathe of the market that there's little incentive for them to compete**, according to the nation's competition regulator. The Australian Competition & Consumer Commission said in a report released Friday that **ALDI, Coles and Woolworths are some of the most profitable supermarket businesses among global peers**, and their average product margins have increased over the past five financial years.

A report by the ACCC earlier this year found that **Australian supermarkets were among the most profitable in the world**. The inquiry into Australia’s supermarkets looked at how prices have changed and how profitable the supermarkets are compared to international competitors.

Reporting on the ACCC’s final supermarkets inquiry report, Guardian Australia notes: "Australian Competition Consumer Commission (ACCC) determined that these major chains, alongside the discount competitor Aldi, rank among the most lucrative supermarket enterprises globally." It adds that "After evaluating three different profit metrics, the ACCC concluded that Coles, Woolworths, and Aldi 'appear to be among the most profitable supermarket businesses worldwide.'"

The ACCC has found that **Coles and Woolworths are among the most profitable supermarket chains in the world** and have so much power that they don't need to compete hard on price. Deputy Chair Catriona Lowe says the inquiry compared the profitability of the big Australian supermarkets with **relevant comparator countries** and found their margins to be high by international standards.

The Sydney Morning Herald, summarising the ACCC report to be released on Friday, writes: "The report from the Australian Competition and Consumer Commission, to be released on Friday, shows without more substantial rivals, the stranglehold enjoyed by Coles and Woolworths over the nation’s shoppers will intensify, delivering them higher profit margins." It quotes directly from the report: "‘Aldi, Coles and Woolworths appear to be among the most profitable supermarket businesses globally,’ it found." It further notes: "Woolworths, Aldi and Coles’ profit margins are on the upper end when compared to global peers, the report found. Only Canadian franchise supermarkets retailer Loblaw is more profitable…"

On 21 March 2025, the ACCC released its **Supermarkets Inquiry Final Report**. The Final Report found that, despite facing higher input costs, **Australian supermarkets, including Woolworths and Coles, increased their profitability** over the last five financial years. It also noted that the supermarket industry is an oligopoly dominated by Woolworths and Coles, whose market positions are entrenched. The report drew on analysis of **profitability and margins compared with international supermarket businesses**.

The final report for the ACCC’s supermarkets inquiry has made 20 recommendations **after finding an increase in average profit margins over the past five financial years**. It also found that **ALDI, Coles and Woolworths are some of the most profitable supermarket businesses among global peers**, with average product margins having increased over the past five financial years.

The Conversation’s analysis of the ACCC supermarkets inquiry explains: "The final report from the ACCC indicates that Australian supermarkets show high levels of profitability when compared to their international counterparts." It states that "The average earnings before interest and tax margins for ALDI, Coles, and Woolworths were identified as among the [highest] of supermarket [chains] in relevant nations." It adds that their "average net profit margins after tax were found to be comparable to Walmart in the United States, Ahold Delhaise in the Netherlands and Belgium, and Tesco in the United Kingdom, though slightly lower than Canada's Loblaw supermarkets."

The interim report of the **Supermarkets inquiry 2024–2025** sets out the ACCC’s approach to analysing profitability and margins. One of the objectives is to "**draw out any useful comparisons between the profitability of Coles and Woolworths and their international peers**" and to assess whether Australian supermarkets’ profitability is high relative to international comparators.

Finance-focused coverage of the ACCC report notes that the investigation "highlighted that ALDI, Coles, and Woolworths exhibit significantly higher profitability levels compared to their global peers, with a notable increase in average product margins over the five fiscal years leading up to 2025."[11] The article also cites ACCC figures that Woolworths commands 38% of the national grocery market and Coles 29%, underscoring their market power and profitability.[11]

A Proactive Investors article on the ACCC report states that "the big two supermarkets, Coles and Woolworths, have once again come under scrutiny" and that the watchdog found both chains "have limited incentive to compete on price and continue to maintain strong earnings margins."[12] It reports that "the ACCC estimated Woolworths takes in 38% of supermarket grocery sales, while Coles controls 29%" and that both increased their product margins over the past five years, contributing to higher earnings margins despite cost pressures.[12]

In a supplementary submission to the ACCC interim report, Woolworths Group argues that its profitability is not excessive, stating: "The profitability of Woolworths Group including its Australian Food business is not unreasonably high and is proportional to the size of Woolworths’ business, on any metric." It cites the ACCC interim report: "The Interim Report acknowledges that ‘when profitability is considered with reference to a company’s return on capital, Coles and Woolworths do not appear significantly more profitable than international peers’." This highlights that different metrics (return on capital vs margins) can yield different views of relative profitability.

An ABC-style news clip posted to YouTube reports on the ACCC findings: "the ACCC has found Woolworths and Coles rank among the world's most profitable supermarket chains, with profit margins increasing since the pandemic." The segment notes that following a year-long inquiry, the ACCC recommends transparency measures and reforms, and that the report "found no clear evidence of price gouging" despite accusations, while confirming their high profitability relative to global peers.

A YouTube explainer on the ACCC report states that the "final report in February 2025... found that Coles, Woolworths, and Aldi are among the most profitable supermarket businesses globally when compared against international peers." It adds: "Their average earnings before interest and tax margins ranked among the highest in relevant comparator countries" and that "their average product margins... increased over each of the previous five financial years." The video quotes the ACCC as explicit that some grocery price increases "resulted in additional profits for the supermarkets" beyond cost pass-through.

The ACCC’s supermarkets inquiry compared the profitability of **Coles Group and Woolworths Group** with that of major international supermarket chains such as Walmart, Ahold Delhaize, Tesco and Loblaw. According to coverage of the final report, **earnings before interest and tax margins for ALDI, Coles and Woolworths were among the highest of supermarket businesses in relevant comparator countries**, and net profit margins were similar to or higher than several of these international peers.

In its public submission to the ACCC groceries inquiry, Coles Group discloses financial metrics: "In FY23, Coles achieved operating revenues of over $40 billion, but its net profit after tax (NPAT) was just over $1 billion or 2.57%. Put another way, for every $100 of operating revenue, Coles makes just over $2.50 of net profit after tax." These figures are among the data points used by the ACCC when comparing margins and profitability with international supermarket chains.