The Greens Institute has proposed a $25.1 billion federal plan to nationalise over 200 Coles Group (ASX: COL) and Woolworths Group (ASX: WOW) supermarkets, aiming to capture 20% of the grocery market share and slash household food bills by up to 22%. The pitch channels a similar municipal grocery model from New York City.
Proposal Requires $25.1 Billion to Build 424 Stores
- Capital Expenditure: The proposal requires $25.1 billion in federal funding over five years to acquire existing sites and build 424 new stores.
- Market Target: Publicly owned “Fair Go Grocers” would capture a 20% market share to challenge the existing supermarket operators.
- Pricing Model: A statutory authority would set monthly wholesale and retail prices, promising discounts of up to 22% on essentials.
Breaking the Supermarket Duopoly Through Forced Acquisition
More than 200 existing supermarkets operated by Coles (ASX: COL) and Woolworths (ASX: WOW) would be nationalised under the blueprint released by the Greens think tank, ABC News reported. Former Greens MP Max Chandler-Mather leads the initiative, which seeks to implement forced divestiture laws to seize major retail sites and three core distribution centres from the two dominant chains.
The federal government would finance the initial five-year capital layout, estimated at $25.1 billion, covering land acquisition, store construction, and supply chain infrastructure. According to the think tank’s analysis cited by ABC News, Coles’s supermarket earnings before tax climbed 58% since 2019, while Woolworths’s grew 41%. The proposal argues that operating the proposed “Fair Go Grocers” network on a non-profit basis would remove corporate margins from essential items like milk, bread, and fresh produce.
| Supermarket Operator | Recent Reported Net Profit | EBIT Growth Since 2019 |
|---|---|---|
| Coles Group (ASX: COL) | $1.09 billion | 58% |
| Woolworths Group (ASX: WOW) | $1.14 billion | 41% |
Greens Leader and 84% of Voters Support Plan
Newly elected Greens leader David Shoebridge endorsed the proposal, emphasizing that cost-of-living pressures have left households struggling with grocery bills. Polling commissioned via YouGov found that 84% of surveyed voters supported testing publicly owned supermarkets in Australia, while 16% opposed the concept.
The model draws direct inspiration from New York City Mayor Zohran Mamdani’s municipal grocery initiative, which aims to establish five city-owned supermarkets across the five boroughs by 2029. Local business groups in New York challenged that plan in court, arguing that state-subsidized stores would distort local retail competition. In Australia, the competition watchdog has previously scrutinized Coles and Woolworths over discount representations, noting that the major grocers were among the most profitable in the world.
Public Grocery Network Would Become Self-Funding
The Greens Institute maintains that after the initial five-year capital injection of $25.1 billion—roughly equivalent to the annual expenditure on the Pharmaceutical Benefits Scheme—the public grocery network would become self-funding. Chandler-Mather stated that the stores would operate without requiring ongoing taxpayer subsidies.
A newly established statutory authority would dictate monthly pricing structures and minimum wholesale rates paid to farmers and suppliers. Board members would include experts in farming, nutrition, and food science.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
