Prime Minister invites Middle Eastern retail giant to Australia as free trade deal opens doors for investment and greater supermarket choice.

Prime Minister Anthony Albanese has extended an invitation to Emirati retail giant LuLu Hypermarket to enter the Australian market, aiming to shake up the country’s concentrated supermarket sector dominated by Coles and Woolworths. The invitation was made during a visit to the United Arab Emirates, coinciding with a newly signed free trade agreement between the two nations.

With over 250 outlets across the Gulf states and beyond, LuLu Hypermarket is well positioned to source directly from Australian producers, including mango and orange growers, as well as Halal-certified meat suppliers. “I have encouraged him to come to Australia. We need more competition in the supermarket sector,” Albanese said, highlighting the need for more choices and fair pricing for consumers.

The move follows a Competition and Consumer Commission review, which found that Coles and Woolworths have little incentive to compete aggressively on price due to their market dominance. While critics have suggested breaking up the supermarket giants, Albanese dismissed such measures, favoring alternative approaches to increase competition.

The government is exploring zoning and planning reforms to open up more sites for new stores, addressing long-standing concerns that foreign competitors are blocked by existing chains controlling potential locations. The administration has also indicated it will investigate “excessive pricing regimes” to curb potential price gouging.

By inviting LuLu Hypermarket, Australia could see increased retail competition, improved supply chain opportunities for local producers, and potentially lower prices for consumers, signaling a new chapter in the country’s supermarket landscape.