Prime Minister Anthony Albanese visited a LuLu Hypermarket in the UAE. Photo: Albanese Facebook.
Anthony Albanese wants to see more competition in the Australian supermarket sector, and he is looking to the Middle East to help deliver it.
On a stop-off in the United Arab Emirates on Monday (29 September), the Prime Minister visited what is known as a hypermarket chain and asked them to set up shop in Australia.
The Emirati hypermarket chain is the Lulu Group, and Mr Albanese sees it as one answer to the stranglehold supermarket giants Coles and Woolworths have on Australian shoppers.
The Prime Minister dropped in to say hi to LuLu Hypermarket chairman Yusuff Ali while making a quick visit to the UAE, and he invited him to branch out to Australia as part of a free trade agreement.
“One of the great things about the chairman’s company is there are 300 supermarkets just like this one,” Mr Albanese said while in one of the stores.
“I have encouraged him to come to Australia as well.
“We need more competition in the Australian supermarket sector, and we have had a little discussion about that.
“This company is big enough to have direct relations with producers [in Australia], whether they be mango producers, the orange producers, the meat producers that the chairman met in Mudgee, who are still providing Halal-certified meat into this market.”
The new free trade agreement with the UAE will remove tariffs on 99 per cent of Australian exports and also increase investment in Australia from the UAE’s sovereign wealth fund.
LuLu Hypermarket already imports some products from Australia.
Australian beef and even Tim Tams, among other Aussie items, are retailing for less in the UAE.
“This is a significant company. They are the largest throughout the Middle East. They’re the second-largest in Saudi Arabia,” Mr Albanese said.
“We know that ALDI has come to Australia, and this is a significant player that has an engagement with Australia, and I want to see more competition.
“What that does is open up all of the markets of the Middle East through the United Arab Emirates that are an important trading partner for Australia.
“This is important to deliver for Australian businesses, for Australian consumers and for our economy.”
Mr Ali proudly showed the Australian PM around one of his supermarket stores, which was adorned with Aussie flags and produce.
He said he was “very happy” to welcome Mr Albanese to his business.
“I am very honoured, and I am thankful to his excellency for visiting and to display and show our Australian products, and very high-quality products which Australia is exporting and we are importing,” Mr Ali said.
In March this year, the Australian Competition and Consumer Commission reported that Woolworths accounted for 38 per cent of all supermarket sales in Australia, followed by Coles at 29 per cent and ALDI at 9 per cent.
The ACCC’s review found that Australia’s supermarkets are among the most profitable in the world, with limited incentive for them to compete on price.
It found grocery prices had jumped 24 per cent in Australia in just five years.
The Federal Government is committed to tackling price gouging and punishing those supermarket companies involved in uncompetitive behaviour.
But Mr Albanese rejected Coalition and Greens suggestions during Labor’s first term in office that the government should apply break-up powers against rogue supermarket giants and sell off parts of their businesses.
