The long-awaited ACCC inquiry did recommend reform to improve customers' experiences but failed to identify exorbitant profit margins for Australia’s two major grocers, finding profits were largely in line with the cost of doing business.

The report concluded there were growing opportunities for competition, refraining from labelling the supermarket giants as a duopoly. Instead, it classified the market as an "oligopoly," with Coles and Woolworths collectively accounting for 67 per cent of Australian grocery sales.

Aldi has a nine per cent share, and Metcash-supplied supermarkets seven per cent. 

It found the two supermarket giants are using promotions to make it harder for customers to judge whether they are getting a good deal and that Coles and Woolworths’ dominance of the sector seems set to continue.

Treasurer Jim Chalmers responded to the findings by highlighting the actions the government has already taken, such as increasing funding for the ACCC, but refrained from introducing penalties.

“What we need is more scrutiny, more information and more competition,” he told Sky News.

“Labor is already acting on each of those fronts.”

Nationals Senator Bridget Mckenzie slammed the Treasurer’s “flaccid” response.

“This is a very flaccid response from Jim Chalmers. We put a very comprehensive plan on the table to address the lack of competition in our supermarket sector and the government failed to pick up on it," Ms Mckenzie told Sky News. 

“They can’t build a house yet somehow they’re going to stop Coles and Woollies from gaming the planning system, but I didn’t hear the word penalties. I didn’t hear any tough measures that are actually going to put a very strong incentive for our supermarkets to behave better.

"Every time this government tries to take action and look strong – they’re backing big unions, big business, big government - they’ve failed.”

Ms McKenzie argued that despite the ACCC's findings, the ongoing price increases faced by Australian shoppers during a cost-of-living crisis suggest that the supermarkets are colluding together.

“The Labor party is always on the side of big business and never on the side of the Australian consumer and that is why they haven’t got a big stick in this response."

The Coalition proposed a response that included fines of up to $2 million or divestiture, which, according to the senator, would have served as a "serious disincentive". 

“This is, once again, the Labor party backing their mates at the big ends of town," Ms McKenzie said. 

Shadow foreign affairs minister David Coleman said the sound of checking out an item at a supermarket was a "reminder of the failure of Anthony Albanese's leadership”.

The Coalition has floated the possibility of establishing divestiture powers, joining with the Greens in a threat to break up the big supermarkets.

Mr Coleman said the proposal should be on the table, despite the competition watchdog's findings.

The final report for the ACCC's supermarkets inquiry did not include divestiture in its 20 recommendations.

The regulator instead recommended clearer pricing practices, greater transparency for suppliers and reforms to planning and zoning laws.

The recommendations are designed to improve competition in the supermarket sector, make a difference for consumers and give suppliers fairer bargaining conditions.

ACCC Deputy Chair Mick Keogh said there is no “silver bullet” that will address the issues identified.

“Butt we are confident that our recommendations will make a difference for consumers will equip suppliers to make more informed business and investment decisions while bearing a more appropriate level of risk, and will boost competition in the sector,” he said.