Woolworths boss Brad Banducci walked out of a heated television interview after the supermarket giant’s pricing practices came under scrutiny.
During an ABC Four Corners investigation, reporter Angus Grigg told Mr Banducci that Rod Sims, the former head of the Australian Competition and Consumer Commission, had described Australia as having one of the most concentrated supermarket industries in the world.
Mr. Banducci said “that’s not true” and tried to argue that the industry was in fact “an incredibly competitive market.”
He also points out that Mr Sims is ‘retired’.
When Griggs asked the head of Woolworths if he was “questioning” Mr Sims’ integrity, Mr Banducci asked: “Can we get that out?” Is that good?’
Woolworths boss Brad Banducci left an interview on ABC’s Four Corners program where he was questioned about his pricing practices
Woolworths boss Brad Banducci (pictured) asked: ‘Can we take that out? Is that okay?’, a few seconds later said ‘I think I’m done, guys’, and then left the interview
Grigg then said: ‘we’re official, you said it… let’s just move on’.
Seconds later, Mr. Banducci said, “I think I’m done, guys,” and walked out of the room.
A surprised Grigg said: ‘You’re walking out? Real?’ when someone came up to him and said, “We’ll take a break.”
Mr. Banducci eventually returned to continue the interview.
“Let’s keep going,” Grigg said.
Grigg later described Banducci’s strike midway through the interview as “quite surprising.”
“I think it really shows you that you have the boss of the largest supermarket chain in the country who really isn’t willing to answer too many questions, and it shows how little control they’ve had over the years,” he said.
Four Corners also revealed on Monday evening how Woolworths’ biggest rival Coles benefited from higher prices, despite repeatedly saying the supermarket was doing everything it could to keep grocery bills low.
Leaked emails were shown claiming that Coles received a one-off payment of $25,000 from a supplier to partially cover a price increase, but then increased the price by the full amount anyway.
The price increase of around 5 per cent that the supplier – who was not named by the ABC – attempted to cover its higher costs was initially rejected by Coles on the basis of ‘customer needs’ and the ‘competitive environment’.
The Coles representative reportedly said that the price increase would cost the company hundreds of thousands of dollars, and that if they still wanted to increase the price, they would have to pay compensation to close this ‘gap’.
‘Now this gap has, truthfully, been closed. There is no rhyme or logic behind it,” said the source, who works for the multinational supplier.
Coles and Woolworths together control 65 percent of the Australian supermarket market.
Julian Hilliard, who has worked in retail for 38 years and worked as a buyer for both Coles and Woolworths, says the supermarket giants rarely compete on price.
“I would probably say if you did five stores in Woolworths and five stores in Coles… the difference would be maybe a few cents depending on the specials,” he said.
Mr Sims said of Coles and Woolworths: ‘We have… turned a blind eye for a very long period of time, almost as if we have boiled the frog for a very long time (and) they have just gotten bigger and bigger’.
Coles CEO Leah Weckert was asked whether there was a huge ‘power imbalance’ between the company and its fruit and vegetable suppliers.
She denied this was the case, saying: ‘We work closely with our suppliers because we know that for us to be successful, our suppliers have to be successful.
‘Because we know fruit and vegetables are crucial for the big two (Coles and Woolworths). They are the first thing you see when you enter a store.’
Daily Mail Australia has contacted both Woolworths and Coles for comment.
Coles (photo) and Woolworths together control 65 percent of the Australian supermarket market