If the National Party secures influence in a future Coalition government, one of its top priorities will likely be to restructure Woolworths and Coles. The objective is clear: break their market dominance and foster real competition in the Australian grocery sector.
This move would be a fixed condition in any agreement with the Liberals, not open to negotiation.
Though the specifics of how the split would be carried out remain unclear, a historical precedent exists. In the 1980s, US telecommunications giant AT&T was dismantled into smaller entities to restore competitive balance. A similar approach could be applied to Australia’s supermarket giants.
Critics argue that dividing the businesses would raise operational costs. However, within National Party ranks, frustration over the influence and conduct of the two chains has been simmering for years, particularly regarding their treatment of farmers.
Why the Supermarkets Should Pay Attention
It is easy for senior leaders at Coles and Woolworths to believe this is not an urgent concern. With no immediate change of government in sight, they may assume there is time to wait things out.
But that would be a strategic mistake.
The Nationals’ view is not based on personalities or short-term politics. It is rooted in years of lived experience across farming communities. Unless the major supermarkets take concrete steps to change how they engage with rural suppliers, any future government involving the Nationals could act decisively.
A more constructive path is still possible.
Woolworths and Coles could choose to rebuild trust with Australian farmers and take a leadership role in supporting sustainable agriculture. This could include rethinking how they source and price fresh food and ensuring those at the beginning of the supply chain are treated fairly.
Even if this means slightly higher prices at the checkout, the long-term benefits, such as reduced waste, secure supply chains, and stronger rural communities, are worth it.
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