IGA sale to Coles on ice
The competition regulator has concerns the sale of the Progressive Supa IGA store in Busselton Central to Coles would remove the city’s only independent full-line supermarket.
Metcash and the co-owners of IGA stores in Busselton, Halls Head, Bunbury and Dianella plan to sell the supermarkets to the Wesfarmers-owned retail giant.
In a statement released yesterday morning, the Australian Competition and Consumer Commission said the move would likely result in less competition in Busselton. It has deferred its decision until August 14 for further public comment.
The ACCC said market participants had submitted the Supa IGA was the only large supermarket which sourced from local producers. The regulator said market inquiries revealed the Busselton store stocked products from regional areas which were not available in Coles or Woolworths, although some products may be available from other local stores.
Busselton Chamber of Commerce chief executive Ray McMillan said the ACCC’s concern was a “fairly reasonable assumption”.
“It creates a duopoly. Whether that’s good for the town is questionable, ” he said. “When you consider that there’s a Coles supermarket and a Coles Express going in at the new Vasse town centre, it appears they’re making a concerted effort to increase their presence in Busselton.”
The ACCC noted the sale would include Progressive’s conditional approval for a liquor licence in the Busselton store, which Coles would operate under its Liquorland banner.
