Perth Voice Interactive

AUSTRALIA’S competition watchdog is worried about Coles’ proposed takeover of the Supa IGA in Dianella.

If the takeover proceeds, Coles will own half the 10 supermarkets within 3km of the store, one of four Supa IGAs in WA in Coles’ sights.

“The [Australian Competition and Consumer Commission’s] preliminary view is that the proposed acquisition may result in a substantial lessening of competition in one or more of the local markets for supermarket retailing,” commissioner Jill Walker says.

“The ACCC is also concerned that the proposed acquisition would remove access to Supa IGA promotions for shoppers in these areas.”

Local couple Norm and Margaret Cox have shopped at Dianella Plaza for 14 years.

They prefer to shop at IGA because of its “Seniors Tuesday” five per cent discount, but they admit they aren’t particularly loyal and check out various specials before deciding where to shop.

“It is good that the market domination in the supermarket space is being seriously looked at,” says federal Labor Perth MP Alannah MacTiernan.

“Like many Australians, I am perplexed that the duopoly of Coles and Woolworths have been allowed to acquire the percentage of the market they have. It is not healthy to see competition continue to erode.

“It creates difficulty for local suppliers and ultimately leaves consumers vulnerable.”

Coles spokesperson Jon Church says “at this stage we are considering the issues raised by the ACCC”.

The ACCC will accept submissions on the proposed takeover till July 24. Its final decision has been deferred to August 14.

by STEPHEN POLLOCK