Impact of Supermarkets in Australia

Impact of Supermarkets in
Australia on Sustainable
Development Goals
MMH773: Ethic and Corporate Sustainability
5th August 2022
Sneh Mehta
Student ID : S222337462
ABSTRACT

Sneh Mehta S222337462
The most important factors of sustainable development are environment accountability,
economic growth and social inclusion[CITATION Con \l 1033 ] The purpose of this study
is to analyse how supermarkets impact achievement of these goals and the importance of
protecting the community and planet. This study has been carried out using newspaper
articles, published articles and websites. Finding shortcomings of supermarkets and strategies
to improvise is the main purpose of this study.
INTRODUCTION
There are four major supermarkets in Australia, Coles, Woolworths, Aldi and IGA.
Sustainability is important to well-being of the country and it’s residents. Australia and its
government prioritise healthy environment, equal opportunity, human rights and economic
welfare of the country [ CITATION Sus \l 1033 ]. Coles has now overtaken Woolworth’s
to become the most sustainable supermarket in Australia. [ CITATION Ele21 \l 1033 ].
This study included the strategies implemented by Coles to achieve this goal and analyse
their impact on each SDG’s. The covid-19 pandemic has impacted consumer purchasing
patterns and supply chain issues in the supermarket sector. The effects on sustainable goals
due to the pandemic have been taken into consideration in this study.
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Sneh Mehta S222337462
Overview of Supermarkets in Australia
Woolworths and Coles are the largest supermarket chains in Australia with over 835 and
1084 outlets respectively[CITATION Woo22 \l 1033 ]. The industry currently is
dominated by a few handful retailers turning it into a oligopolistic market. Since Woolworths
and Coles together dominate 65.8% of the market share, we can conclude that 82.8 billion
Australian Dollars in revenue goes to these grocery giants alone.
Table showing Markets share of Grocery Retailers in Australia in 2021[CITATION Sta \l
1033 ]
Impact of Covid-19 pandemic on Supermarkets in Australia
The industry and consumer behaviour has changed in many ways after the pandemic and are
likely to stay long term. A continued spike is seen in the averagegrocery spending on
perishable and non-perishable items since March 2020 [ CITATION Abs21 \l 1033 ].
Online sales for retailers also continue to rise, allowing retailers to scale economies and
innovate traditional systems. This growth for supermarkets has come at a cost of increase in
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Sneh Mehta S222337462
hours worked by employees, rise in food costs and supply chain breakdowns[ CITATION
Was20 \l 1033 ][CITATION The \y \l 1033 ][CITATION Per \l 1033 ]. Improving
supplier systems, addressing skill shortages and increasing local food dependency, will help
to resolve future issues arising due to war and pandemic.
Analysis of Sustainability Goals by Coles:
Between the supermarket giants in Australia, Coles was ranked first in terms of sustainability
parameters. [ CITATION WBA21 \l 1033 ]. For the purpose of this assessment, various
strategies taken by Coles to achieve sustainability goals and impact of Coles on various
stakeholders is discussed:
Goal 1: No Poverty
Strategies: Coles partnered with food rescue centres provide help by providing food and
funds in times of disaster relief[ CITATION Col19 \l 1033 ]. Even though 13.1% of
Australians are below the poverty line, Coles has not specifically done much to specifically
achieve this goal. [CITATION Pov \l 1033 ]
Goal 2: Zero Hunger
Strategies: : Coles partners with charities or distribution centres such as SecondBite and
foodbank to donate unsold food which potentially is wasted. Coles and it’s customers also
raised $1.7 million and donated meals to over 1400 community organisations.
Stakeholders Impacted: Community, Charities and distribution centres, Coles customers
[CITATION Col \l 1033 ]
Goal 3: Good Health and Wellbeing
Strategies: Coles promotes healthy eating to their consumers through their Healthy Hub
community initiate where people can try out recipes and buy healthy groceries at discounted
prices. Heart Foundation and Coles also rewarded shoppers who bought healthier items in a
month. [CITATION Mum \l 1033 ]
Stakeholders Impacted: Consumers, Internal Stakeholders
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