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Could State-Owned Supermarkets Make Groceries Cheaper?

A Greens-linked plan promises lower prices through public supermarkets, but its savings and costs are estimates, not proven results.

MoneyOctober 5, 20264 min readHow Sureno writes this

The short version

A Greens-linked proposal says publicly owned supermarkets could sell some essentials more cheaply, but the savings are projections rather than demonstrated results. ¹²
The plan proposes acquiring more than 200 Coles and Woolworths stores and opening 424 additional shops, with a reported cost of $25.1 billion over five years. ¹²
Its proponents estimate a family of four could save about $60 a week, or $3,134 a year; those figures depend on the plan's assumptions. ¹²
The proposal is not an announced government program, and the supplied reports do not establish whether it would pass, how acquisitions would work in practice or whether the projected savings would be achieved. ¹²

What is the publicly owned supermarket proposal?

The Green Institute, the Australian Greens' research arm, has put forward a plan for a government-owned grocery network called Fair Go Grocers. Former Greens MP Max Chandler-Mather is promoting it. The proposal would involve taking over more than 200 Coles and Woolworths supermarkets and opening hundreds of new government shops. ¹²

The Guardian reports that the plan also includes taking over three distribution centres and building 10 more. It proposes a network with about 20 per cent of the market, according to that report. The Canberra Times describes more than 400 additional shopfronts; the Guardian specifies 424 new supermarkets. ¹²

Would government supermarkets make groceries cheaper?

The proposal's supporters say the network could offer essentials such as fruit, vegetables, bread, milk and meat at lower prices. The Green Institute's estimates suggest a family of four might save around $60 a week, or $3,134 a year. The reports give slightly different descriptions of the expected price cuts: one says the average shop could cost as much as 22 per cent less, while another reports a claim of more than 20 per cent lower average prices. ¹²

These are estimates from the proposal's backers, not results from an operating Australian chain. Lower prices would depend on how the stores were funded and run, what they paid suppliers and how much business they attracted. The sources provided do not include an independent assessment confirming the savings.

How would the stores set prices?

Under the plan described by the Guardian, a statutory authority would set prices monthly and establish minimum wholesale rates for suppliers. A statutory authority is a public body created to carry out specific functions. The proposed authority would include people with expertise in supermarket operations, nutrition, food science and farming. ²

The basic argument is that public ownership could allow stores to focus on affordable essentials rather than making profits for private owners. That does not automatically mean every item would be cheaper. The available reports do not explain in detail how the authority would cover operating costs, manage price changes or respond if supplier prices rose. ¹²

What would the plan cost taxpayers?

The reported estimate is $25.1 billion over five years. The Canberra Times says the Green Institute expects the stores to become self-funded after the initial spending. That is a claim in the proposal, not evidence that the network would later cover all its costs. ¹

Buying existing sites and building new stores and distribution facilities would require substantial public spending. The reports do not provide enough detail to assess the assumptions behind the total, the risks of cost overruns or what would happen if the chain did not become self-funded.

Is the proposal government policy, and what are the trade-offs?

The reports describe a proposal from the Green Institute, backed by the Greens' leader, and an appeal for the federal government to act. They do not say that the federal government has adopted it. One reported mechanism is new forced-divestiture laws to acquire major supermarket sites. The sources do not establish whether those laws would be enacted or how any acquisition process would work. ¹²

The potential benefit is a publicly run competitor that aims to offer everyday groceries at lower prices. The trade-offs include the large up-front public cost and the practical challenge of running a national chain of shops and distribution centres. The proposal's promised savings remain uncertain until its assumptions, funding and operating details are tested. ¹²

Why is New York mentioned?

The proposal is described as inspired by New York City mayor Zohran Mamdani's plan for five city-owned grocery stores. That is a point of comparison, not proof that the Australian plan would produce the same results. The supplied reports describe a plan in New York, but provide no operating results that could show how it compares with the Australian proposal. ¹²³

What we don't know yet

Whether the Australian government will consider or adopt the proposal.
How the proposed acquisitions would be authorised, valued and carried out.
Whether the estimated $25.1 billion cost and later self-funding assumption would hold.
Whether shoppers would actually save the projected amounts once the network was operating.

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Questions people ask

How much could a family save under the supermarket plan?

The Green Institute estimates that a family of four could save about $60 a week, or $3,134 a year. These are projections from the proposal's supporters, not confirmed savings. ¹²

How many supermarkets would the plan create?

The proposal would take over more than 200 Coles and Woolworths stores and add hundreds of new shops. The Guardian reports 424 new supermarkets, while the Canberra Times describes more than 400 extra shopfronts. ¹²

Would the government nationalise Coles and Woolworths?

The plan proposes taking over more than 200 stores owned by the two chains, rather than describing a takeover of the companies as a whole. The Guardian reports that the proposal would use new forced-divestiture laws, but the reports do not establish that such laws will be introduced or used. ¹²

How much would publicly owned supermarkets cost?

The reported estimate is $25.1 billion over five years. The Green Institute says the stores would become self-funded after the initial spending, but the supplied reports do not independently verify that assumption. ¹

Is the Greens supermarket plan happening?

The sources describe a proposal promoted by the Green Institute and backed by the Greens' leader, not an adopted federal government program. They do not report a decision by the government to proceed. ¹²

Sources

Greens float state-owned supermarkets for cheaper food — canberratimes.com.au, 2026-10-05
Max Chandler-Mather pitches Mamdani-style $25bn plan to nationalise 200 Coles and Woolworths supermarkets — the Guardian, 2026-10-05
The ‘completely ridiculous’ idea that would slash grocery bills by 30 per cent — Nine.com.au, 2026-10-05

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