Watchdog bark at Woolworths' plans

THE Australian Competition and Consumer Commission has opposed Woolworths Limited proposed acquisition of the Karabar Supermarket in Queanbeyan, New South Wales.

ACCC chairman Graeme Samuel said if allowed, Australia’s largest retailer would own three of the four full line supermarkets in the Queanbeyan area or three out of five if the smaller Aldi supermarket is also included.

“The ACCC concluded that the acquisition by Woolworths would be likely to substantially lessen competition in the local retail supermarket market surrounding the store,” Samuel said.

Instead, Samuel said the ACCC had strong evidence to suggest that in the absence of the acquisition by Woolworths, the supermarket would instead be acquired by an independent operator, Supabarn.

Samuel said Supabarn has intentions to expand the supermarket to operate as a full-line supermarket in strong competition with Woolworths and other supermarket operators.

“The ACCC found that Supabarn supermarkets offer a different proposition to existing operators in the local market and considered that this would lead to increased consumer choice, as well as competition between supermarket operators on a number of factors including price, range, service, and product quality and freshness,” he concluded.

Australian Property Journal