ACCC backs Coles buying three IGAs
Coles is set to add another three supermarkets in WA from next year after the competition watchdog backed the purchase of three rival outlets.
The Australian Competition and Consumer Commission said it would not oppose Coles' acquisition of Progressive Supa IGA supermarkets in Bunbury, Halls Head and Dianella.
The ACCC is yet to rule on Coles buying a fourth Progressive Supa IGA in Busselton as it awaits further input from the Wesfarmers-owned retailer.
Commissioner Jill Walker said the likely entry of Aldi supermarkets in some of the markets serviced by the Progressive stores was a factor in the decision.
"The ACCC noted community concerns that the proposed acquisition would remove Progressive's differentiated offering from the local areas," Dr Walker said.
"However, in each of the local markets around these three stores, there is at least one large competitive independent offer, in addition to Woolworths' supermarkets."
The commission noted a decline in sales at the Progressive store which could have led to closure without the acquisition. Also, grocery wholesaler Metcash, a 45 per cent owner of the outlets, was willing to sell them despite losing sales.
Coles said the stores would be refurbished and begin trading under its brand early next year.
"As part of our agreement to purchase these stores, we will offer continued employment to the existing team members," Coles State manager Cathi Scarce said.
Regarding the Busselton store, Ms Scarce said Coles believed the local market was highly competitive.
