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Small grocers lobby for limits on Woolworths & Coles expansion plans

By  |  June 11, 2012

Masters Grocers Australia, a group of independent grocers, are lobbying the federal government and the Australian Consumer and Competition Commission to take action on plans by Woolworths and Coles. Masters Grocers argues that the two companies are developing oversized and unprofitable supermarkets in “marginal sites” (rural areas with small populations), thereby eliminating competition and small businesses. Among Masters Grocers’ demands for the government and ACCC are:

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    â–  Use its investigative powers to assess the profitability of such stores.

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    â–  Press for mandatory competition and net community benefit tests as part of planning approvals for supermarket projects (planning laws are a state responsibility).

    â–  Require that it be given prior notice of proposed property acquisitions by the major chains.

    Full content: Sydney Morning Herald

    Related content: A Presentation on Assessment of Market Power and Dominance (David Evans, Global Economics Group)

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