Supermarket competition: Aldi officials to face consumer watchdog probe after Woolworths, Coles

Executives from supermarket giant Aldi are set to be grilled on the state of the sector, as the consumer watchdog examines rising prices at the checkout.

Aldi officials will be questioned by the Australian Competition and Consumer Commission over the next two days as part of its latest round of hearings into supermarkets.

While Coles and Woolworths have come under fire for their market share and accusations of price gouging, Aldi is the next largest player in the grocery industry.

Aldi holds just nine per cent of supermarket sales nationally, compared to the 67 per cent market share of Coles and Woolworths.

The consumer watchdog previously said it had taken two decades for Aldi to reach a nine per cent market share, indicating there were issues with competition in the supermarket industry.

“This demonstrates the level of difficulty entering and expanding in supermarket retailing, and the significant investment, time and differentiated offering required to expand,” the watchdog said upon the release of an interim report into the sector in September.

The commission said planning and zoning laws may slow a supermarket’s ability for new stores to open.

Officials for Coles, Woolworths and Metcash — the parent company of IGA — will front the commission’s inquiry in coming days.

The hearings into supermarkets are being held ahead of a final report being delivered to the federal government in February.

The inquiry heard on Friday fruit and vegetable growers lacked negotiating powers against major supermarkets, with producers highly dependent on the major chains for sales.

It comes as the ACCC in September launched a court case against Coles and Woolworths, accusing the retailers of misleading customers over specials.

Both grocers deny the allegations and say the legal cases against them are misconceived.

The federal government will provide $30 million in extra funding for the ACCC to continue investigations and enforcements in the supermarket and retail sector.

It has also proposed changes to merger laws and a mandatory food and grocery code of conduct that proposes multimillion-dollar penalties for serious breaches.