Paul Pouloudis has been selling fruit and vegetables for years at the same store his grandfather opened back in 1939. The Tweed Fruit Exchange, located in Murwillumbah, less than an hour’s drive from Byron Bay, has managed to keep its doors open even as larger stores have moved into town.
“We’re still a family-owned business with local staff and loyal customers,” says Pouloudis, a third-generation greengrocer. “The community continues to support us, and we feel incredibly fortunate.”
Across town, Brett Bugg, the owner of IGA, works with hundreds of local suppliers to distinguish his supermarket. “Our customers come to us because we’re different,” he explains. Despite thriving business, he notes that locals don’t have many shopping options. “We’ve got two IGAs and a Coles, and we compete in every grocery category, but it’s the unique offerings that set us apart.”
Competition from larger chains, particularly Woolworths, has long been a concern in the town. Woolworths made a move in 2014 to purchase the land where the former bowls club once stood, intending to build a supermarket. Yet, a decade later, that land remains empty. This site is one of over 100 across the country under scrutiny by the Australian Competition and Consumer Commission (ACCC) as part of its investigation into land banking practices by supermarket giants Coles and Woolworths.
Both Pouloudis and Bugg support competition but have reservations about the proposed Woolworths location. The land, once zoned for private recreational use, requires approval from the Tweed Shire Council for commercial development. Woolworths initially submitted a proposal in 2015, which was approved by town planners but rejected by the council. When the decision was reviewed by the Joint Regional Planning Panel later that year, it was again rejected.
Despite purchasing the land for $2.5 million in 2018, Woolworths has made no progress in building the supermarket. “The land is still zoned for private recreational purposes,” confirms Denise Galle, head of development and planning at Tweed Shire Council. For any change, the council would need to engage the community again before making a decision.
Bugg believes the community’s stance is clear. “The council, the residents, even the state government—none of them want it there,” he says.
Woolworths, for its part, remains committed to bringing a store to Murwillumbah. A spokesperson for the company stated that it is ready to develop the land once planning approvals are secured.
This situation highlights a broader issue: the major supermarkets are holding onto vast amounts of land, preventing competitors from entering the market. According to the ACCC’s interim report, released in September, out of 165 undeveloped sites potentially hoarded by the supermarket giants, 110 are owned by Woolworths, 42 by Coles, and 13 by Aldi. Woolworths has explained that some of these sites are still in development, but many remain unused.
The ACCC is investigating whether this behaviour constitutes land banking—where land is acquired to prevent competitors from establishing stores. The final report is expected in February, but the ACCC has already noted that planning laws can create significant delays and costs for supermarket developments, sometimes giving major players a way to “game” the system.
Reforming these planning laws is now a priority for the federal government. Treasurer Jim Chalmers has begun discussions with state and territory counterparts to open up more sites for smaller competitors. The government has also allocated $30 million to the ACCC to support its investigation into land banking and introduced new merger laws to strengthen the ACCC’s oversight.
Graeme Samuel, who led the ACCC during a similar inquiry in 2008, believes not much has changed in the last 16 years. He points out that town planning restrictions, especially at the local government level, are a significant barrier to competition, particularly in regional areas.
Back in Murwillumbah, Bugg remains hopeful that increased scrutiny of the supermarket giants will lead to change. “We welcome competition and would love the chance to compete at their level,” he says. If land banking can be addressed, he believes it would open up opportunities for independent grocers and even international supermarkets.
As for Pouloudis, he’s not worried about the possibility of Woolworths coming to town. “I don’t lose sleep over it,” he says. “If they come, there’s not much I can do. But as long as we have the community’s support, we’ll stay strong.”
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