The Australian Competition and Consumer Commission (ACCC) has released the report on its inquiry into the competitiveness of retail prices for standard groceries. The report says that while the market is "workably competitive" consumers would benefit from more competition.

The report states: "Australian consumers would significantly benefit if Coles and Woolworths faced more competitive threats that encouraged more aggressive pricing strategies." It also found that the introduction of Aldi stores in the eastern states has had a beneficial impact on competition.

"The Government is under no illusion that introducing more competition into the grocery market will be easy but the ACCC has identified significant benefits for consumers for more vigorous competition," said Consumer Affairs Minister Chris Bowen. The ACCC has recommended several changes, including unit pricing to help consumers compare the value of products and changes to planning laws to encourage competition in shopping centres.

Federal Opposition leader, Brendan Nelson, commented: "We've got to be quite concerned about the compulsory nature of unit pricing on small independent retailers and grocers throughout the country. We know that Coles and Woolworths and Franklins are able to - and some of them have already started to move in the direction of unit pricing but you've got to be very concerned about the impact on small retailers and small grocers throughout Australia."