AUSTRALIA | A proposal to establish 624 publicly owned supermarkets across Australia would require A$25.1 billion in government investment over five years, with its proponents claiming the network could reduce grocery bills by an average of 22 percent.
The Green Institute has proposed a national supermarket chain called Fair Go Grocers to compete with Coles and Woolworths. Its plan includes the compulsory acquisition of 200 existing supermarkets and three distribution centres, alongside construction of another 424 stores and ten distribution centres.
The proposed stores would operate without a commercial profit requirement, offering essential groceries, including fruit and vegetables, bread, milk, and meat, at prices 30 percent below those charged by Coles and Woolworths. Smaller discounts would apply to other products.
The institute estimates that a four-person household could save A$3,134 annually. It has set a target of securing 20 percent of Australia's supermarket market share, with store revenue expected to cover operating costs after the initial five-year investment period.
The proposal was accompanied by a YouGov survey commissioned by the Green Institute and conducted online among 1,500 Australian voters between 18 and 25 September. It found that 84 percent supported rolling out publicly owned supermarkets to reduce grocery prices, while 62 percent said they would be more likely to vote for a party proposing the concept.
The polling also found that 79 percent had experienced greater difficulty affording groceries over the previous year, while 38 percent reported skipping meals or eating less because of food costs.
Green Institute executive director Max Chandler-Mather said publicly owned supermarkets could introduce a different form of competition into the Australian grocery market.
“For half the cost of a single AUKUS submarine we could establish a national network of publicly owned supermarkets that would save families thousands of dollars on their groceries, break the supermarket duopoly and bring lasting cost of living relief to millions of Australians,” said Chandler-Mather.
He argued that food should be treated as an essential service, with consumers having access to a publicly owned alternative.
“Just like healthcare and education, food is essential to life. And just like Medicare and public schools, it’s time we had a public option for food.”
The proposal rests on the assumption that removing commercial profit requirements, shareholder payments, and some corporate overheads would allow Fair Go Grocers to maintain substantially lower prices. Whether those savings could be achieved while operating a national distribution network, purchasing inventory, and meeting staffing and property costs remains a central question.
There are also implications for suppliers. A government-owned competitor targeting a 20 percent market share would become a significant grocery buyer, with its procurement arrangements and pricing expectations potentially influencing negotiations across the wider market.
The proposal comes as New Zealand's Green Party has advanced its own publicly owned supermarket concept, KiwiMart, involving the acquisition of existing stores. Its proposed investment of NZ$2.8 billion would support a network of 120 stores and associated distribution capacity.
Both proposals raise questions about how a government-owned competitor would negotiate with suppliers, maintain its promised price advantage, and operate without ongoing taxpayer support.
Access the YouGov poll commissioned by The Green Institute here.
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