Domenic Costanzo, owner of The Barton Grocer, said he never forgets a face.

Some independent grocers feel smaller suppliers and distributors are being squeezed by big supermarket chains.

But smaller shops offer a personalised service, Mr Costanzo said.

"We're not always going to be the cheapest, we're not always going to be the dearest, but we're here to serve the community," he said.

Major distributors like Coles Group and Woolworths Group are being scrutinised by the federal government.

The Australian Consumer Competition Commission and a government committee are conducting separate inquiries into supermarket prices.

Woolworths and Coles have dominated Australia's supermarket sector for decades.

Six years after entering the market, in 1964, Coles and Woolworths had a market share of less than 20 per cent.

This doubled to 40 per cent by 1978, according to a University of Melbourne paper by Dr David Merrett.

In 2024, they have 65 per cent of market share.

Woolworth and Coles had a 90 per cent share of the ACT's supermarket sector in 2009, a policy review found.

"The only real competitive tension and diversity comes from ALDI and ... Supabarn," the report author, John Martin, said.

"Local IGAs and other independent stores and the few Supa IGAs ... are basically convenience outlets."

Woolworths had 13 stores in 2009, and 20 in 2024. Coles grew from eight stores to 18.

While there are 11 fewer IGA shops, SupaXpress and Spar have entered the market. ALDI has expanded, and Canberra now has a Costco.

Mr Martin said group centres were introduced to Canberra in the 1960s to accommodate supermarket retail.

"This has put pressure on many local centres some of which have declined but many of which are able to reinvent themselves," he said.

Independent grocers can survive by operating within niches, Canberra Business Chamber chief executive officer Greg Harford said.

"The grocery business is a fiercely competitive one, and locally-owned businesses are often challenged by their relatively small scale," he said.

"Local businesses have a huge opportunity though, because they are able to be flexible, target the specific needs of their local customers, offer friendly and personalised service, and a greater or more bespoke range of products, including from local producers."

Most of Barton Grocer's customers do their full shop at a supermarket, Mr Constanzo said.

"We don't pretend people come in and buy the week's groceries but if they can come and get the bread, milk ... then we're happy with that," he said.

"We do compete on a lot of things. A lot of things we can't compete because Woolies and Coles just hammer the wholesaler or the supplier and we don't have that power."

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The shop is located near many government departments and have a big lunchtime trade, Mr Constanzo said.

They make fresh food, coffee and have a florist. The business is also considering partnering with DoorDash.

"You can still make a living out of it. It is harder these days than it was probably 20 years ago, but it's a fun job," Mr Constanzo said.

"As Canberrans, we can be proud that we do a good job in the retail industry."