Supermarket giants Coles and Woolworths are pinning the blame for alleged price manipulation on suppliers as they prepare to fight a landmark consumer lawsuit that could reshape the future of discount pricing across Australia.
And the market reaction is anything to go by — both Coles and Woolworths shares were up around 1.5% in a flat market — then maybe their approach has strategic merit.
In a brief court hearing in Melbourne today, the contours of what promises to be a significant court battle became much clearer.
Not only did Woolworths’ legal team say the Australian Competition and Consumer Commission’s case against the company is “factually misconceived”, both supermarket chains pointed their fingers at suppliers as the cause of any cost hikes. The retailers are being fronted by top silks John Sheahan KC (for Coles) and Cameron Moore SC (for Woolworths), with Allens and King & Wood Mallesons acting for the respective supermarkets.
