A longstanding independent supermarket with more than two decades in the community is set to shut up shop today and be replaced by a Woolworths outlet. John-Paul Drake, Director of Drakes Supermarkets in Adelaide, said the closure of the Castle Plaza store was unfair “in an area already heavily concentrated by the duopoly”.
Sharing his frustration this week, Drake said the handover highlights the challenges independent grocers face under current competition laws.
“50 per cent off everything in-store? It’s a sign you rarely see in a supermarket — but it doesn’t mean that the products are out of date,” he said, of an offer running in his store.
“It means that another independent is closing its doors. Its team members losing their jobs. It’s a community losing competition,” he said.
Drakes boss slams ACCC over Woolworths acquisition
Drakes Supermarkets has been operating in South Australia for over 50 years, and has punched above its weight, competing against Coles and Woolworths to expand to 60 stores in the state.
Drake claimed that the Castle Plaza store, which has been operating for 22 years, was not offered an opportunity to renegotiate its lease, despite its “tenure in the centre”.
He says their formal lease with shopping centre owner Vicinity ended more than a year ago, and they had been trying to secure a new long-term lease ever since.
The decision by Vicinity to instead offer a lease to Woolworths came as the Australian Competition and Consumer Commission (ACCC) assessed Woolworths’ proposed move to the centre. Coles already has a store at Castle Plaza, and Woolworths is expected to open early next year.
“We weren’t given the opportunity to renegotiate our lease,” Drake wrote on social media.
“Numerous enquiries with the ACCC late last year were also met with silence — until literally two minutes after I appeared on national TV, when we finally received a response from the ACCC.
“The ACCC concluded late last year that there was ‘a low risk’ of a substantial lessening of competition, noting Woolworths would be constrained by Coles, ALDI and other Drakes stores in the area.”
Drake said that the assessment was made under rules in place before January this year, when the merger regime changed.
Some 20 Drakes employees will lose their jobs on Friday as the Castle Plaza store closes in Adelaide. Source: Drakes Supermarkets/Facebook
The new laws require Coles and Woolworths to notify the ACCC of supermarket acquisitions, and any land purchases and new lease arrangements that may affect competition.
“From 1 January, the rules changed,” Drake said.
“But, an independent supermarket was removed, a second duopoly operator replaced it, and that was still considered low risk to competition.”
Industry sources, he claimed, said nine to 11 other independent sites were similarly approved before the end of 2025, raising questions about regulatory scrutiny.
Drake said the closure will affect almost two dozen team members, whose employment with Drakes will end this Friday.
“For 20 of our team members, their journey with Drakes will heartbreakingly be forced to end,” he said.
“The patrons of the shopping centre will have one less supermarket for 12 months. But our suppliers will continue with us. Our community will support us. Drakes isn’t going anywhere.
“Competition isn’t about how many logos sit on a map. It’s about whether independents are allowed to stay in the fight.”
He added that when “the rules change the moment after you’ve been removed from the board”, you don’t “call that competition”.
“You call that bullsh*t”.
Woolworths, ACCC respond to claims
Woolworths confirmed its plans to move into Castle Plaza.
“An opportunity opened up to partner with Vicinity, the shopping centre owner, as part of a redevelopment of Castle Plaza, with Woolworths entering as a tenant,” a spokesperson told Yahoo News Australia.
“We look forward to providing the community with a new store experience, and we’ll provide updates in due course.”
A Vicinity spokesperson told Yahoo that Drakes had been “a long‑standing and valued tenant at Castle Plaza”.
“We appreciate their contribution to the centre over many years. We understand that changes of this nature can be challenging, and we remain committed to supporting them through this transition,” they said.
“Our priority is ensuring the centre continues to provide a convenient and compelling retail experience for our customers.”
It’s understood that Drakes was aware their lease, in holdover since May 2025, was coming to an end, and a formal three‑month notice was issued on January 8.
Vicinity said standard leasing processes were followed, communication remained open, and the decision was based on customer needs, centre performance, and long‑term planning for Castle Plaza
An ACCC spokesperson confirmed the agency’s earlier assessment, saying it “considered Woolworths’ proposed acquisition of a lease” at the shopping centre last year and found there was “a low risk that the transaction would result in a substantial lessening of competition.”
“This was because Woolworths would continue to be effectively constrained by the presence of existing competitors in the area, including Coles, ALDI and other Drakes stores,” they said.
“The ACCC notes the significant role that independent supermarkets play in retail grocery competition, as discussed in our Supermarkets Inquiry report last year,” they added.
Yahoo News has contacted the ACCC regarding Drakes’ claims.
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