Overview
- The ACCC announced on Tuesday that it has blocked Coles’ planned purchase and development of a West Kalgoorlie site for a second Coles and Liquorland because it would likely substantially lessen competition.
- The regulator found a real prospect the new Coles would push an effective independent supermarket out of the market and judged new entry would not be timely enough to replace that competitive constraint.
- Coles rejects the ruling, says the store would meet growing demand, create jobs and boost online delivery, and is considering a formal appeal to the Australian Competition Tribunal.
- Kalgoorlie’s current retail mix includes an existing Coles, Woolworths, two franchised IGAs and two independents, and Coles told the ACCC it factored mining activity, planned housing and a large FIFO workforce into its case for extra capacity.
- The decision is a precedent-setting use of the ACCC’s new notification and assessment powers and could shape how regulators police supermarket expansion in regional towns and the future viability of independent grocers.