The chairman of Coles has expressed his disappointment that Australia’s cost of living crisis has been ‘politicised’ to wrongly make out supermarket giants as the villains behind inflation and soaring prices.
James Graham made the controversial comments while addressing Coles shareholders at their annual general meeting in Melbourne on Tuesday.
He sparked outrage by claiming that supermarkets were unfairly targeted and blamed for the crisis.
‘We’ve always been sensitive to the impact of the economic climate on households, and in this context, it’s been disappointing to see cost of living concerns being politicised and directed at the supermarkets,’ Mr Graham told shareholders.
‘This stands in stark contrast to the cooperative approach we saw from governments and regulators during the Covid-19 lockdowns.’
Mr Graham said the ‘results of working together’ in face of natural disasters shows the ‘benefits of constructive engagement between business and governments’.
He argued such cooperation should be the ‘template for the future when it comes to addressing the impacts of complex issues like inflation’.
Soaring prices at the checkout have led the Anthony Albanese government to ask watchdog the Australian Competition and Consumer Commission (ACCC) to investigate whether Coles and its major rival Woolworths abuse their market power.
Coles chairman James Graham sparked controversy when he addressed shareholders at their annual general meeting on Tuesday.
It led to legal action against the supermarket giants for allegedly breaking consumer law with misleading discount pricing claims.
The ACCC said the duopoly would briefly jack up product prices by 15 per cent, before dropping them to below the peak but above the initial price.
Mr Graham vowed that Coles will continue to the ‘right thing’ in cooperating with inquiries from authorities.
‘We are very conscious of the significance of these allegations. They go to the heart of customer trust,’ he said.
However, he indicated they were a side issue with inflation having larger causes.
‘I do think there has been a wider ambition of some behind those inquiries to seek to provide answers to more difficult issues which have been arising from, as I mentioned, inflation,’ Mr Graham said.
The Coles chairman claimed that price rises in Australian supermarkets were favourable compared to overseas
He claimed suppliers had requested price increases because of general inflation and the supermarket had run promotions on those prices.
‘The subsequent discounts offered to customers on these items were the result of promotional investment by the supplier and Coles, which delivered a reduction in the shelf price at a time when households were under significant cost-of-living pressure,’ Graham said.
Pointing to the ACCC’s recent findings, showing a 24 per cent rise in the cost of a basket of food and non-alcoholic beverages in the five years leading to June 2024, Mr Graham said that figure compared well internationally
He said it was less the price hikes seen over the same period in comparable countries such as New Zealand, the UK, Canada, and the US.
However, at least one shareholder was not convinced, telling Mr Graham she was ‘really concerned about the reputational damage’ Coles had sustained in the past year.
‘We are entirely aligned in terms of the importance of trust and sustainability with all stakeholders, in order that we can build long-term shareholder value,’ he replied.
‘The two go hand-in-hand.’
A government watchdog has accused Coles of being misleading in its promotion of specials and supposedly dropped prices
Daily Mail Australia has contacted Coles for comment.
It comes as Coles boss Leah Weckert acknowledged struggling Aussies in her address to shareholders.
‘We know that the current cost-of-living environment is tough for Australians, particularly as increasing household costs make it more difficult to balance the household budget,’ she said.
‘This means our commitment to delivering value has never been more important. With this in mind, we have made significant investments in our value offering over the past 12 months.
A Roy Morgan survey earlier this year found Coles had fallen 221 places from Australia’s fourth most trusted brand to one of the country’s most distrusted brands in just a few months.
Coles recorded a surge in revenue from groceries last financial year, which saw it net profit swell to $1.1billion.
