The Making of Australia's Supermarket Duopoly, 1958–2000

Abstract

Australian supermarkets had one of the highest levels of concentration among developed economies by 2000. This paper explores the making of a duopoly comprising Coles and Woolworths. We present historical data on market shares in Australia and international comparisons for around 2000. We identify the evolution of their dynamic capabilities through the lens of Teece, Pisano and Shuen's positions, paths and processes (1997). The industrial organisation literature stresses interaction become rivals, notably pre-emptive strategies including sunk costs (Lee and Ng 2007; Sutton 1991). We argue that the development of dynamic capabilities enabled the execution of various pre-emptive strategies.

The role of Australian civil society organisations in food system governance: Opportunities for collaboration in dietetics practice

“…CSOs felt that there was an imbalance of power between themselves and sectors of the food industry (e.g., the supermarket duopoly in Australia 32 ) and that the powerful mainstream food lobby had more direct access to political decision‐makers. One respondent said that in contrast to industry, public health advocates and CSOs lacked the assertive skills required to make themselves heard and were risk averse in their approaches to advocacy.…”

Retail Suburbanization, Modernization, and Growth in Sydney during Australia’s Postwar Boom

“…The Sydney Woolworths firm, which also operated variety store chains and like Coles was moving into food retailing, was its chief national rival. 18 Connor had worked on the 1954 Melbourne Metropolitan Planning Scheme and was one of the key early analysts for Australia's retail and property development sectors. His reports offer an insight into the factors influencing retail chain decision making about store diffusion and location.…”

“…They were two of the largest three retailers in the country and had the resources and capabilities to expand the scope of self-service and accelerate its spread, including through the rapid and widespread construction of large, modern stores. 70 In 1956/1957, there were 352 self-service grocery stores in Sydney, accounting for 5.6 percent of all grocery stores and 22.6 percent of all grocery sales. By 1961/1962, the city housed 910 selfservice grocers, accounting for 14.1 percent of all grocery stores and a substantial 54.3 percent of all grocery sales.…”

Supermarket ‘dark jobs’ and rapid grocery delivery: Transformations in labour, technology and logistics

“…While smaller independent grocery stores suffered losses due to decreased foot traffic during lockdowns (Giles, 2022) and an inability to quickly pivot to online services (Stewart, 2021), profits boomed for the supermarket giants. By leveraging their unrivalled logistics networks, control over the supply chain, and real estate dominance of brick-and-mortar stores, Coles and Woolworths were able to exploit the chaos of the pandemic to further entrench their duopoly position in one of the most tightly concentrated grocery industries in the world (Merrett, 2020). The transformations discussed in this article are significant, because as Australia’s largest private sector employers (Pash, 2018; Woolworths Group Limited, 2021) they wield considerable political influence and the power to reshape or erode industrial norms.…”