The ACCC has outlined preliminary competition concerns with Woolworths's (ASX:WOW) proposed acquisition of the independent supermarket operating as SUPA IGA in Karabar, and co-located liquor store operating as Liquor Boss, in a statement of issues published today.
Woolworths and SUPA IGA Karabar currently compete in supplying groceries in the broader Queanbeyan region (encompassing Karabar and Jerrabomberra). Woolworths already operates two supermarkets within a 5km radius of SUPA IGA Karabar, in Queanbeyan and Jerrabomberra.
"Competition between supermarkets is important in ensuring different product ranges, promotions, and service offerings. We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of groceries in the local area," ACCC Commissioner
"Within a 5km radius of SUPA IGA Karabar, it would reduce the number of operators of supermarkets with a significant size and range from four to three, leaving only Woolworths, Coles and
"We are also considering whether the acquisition raises similar concerns in relation to liquor stores, by removing the Liquor Boss as an independent competitor to major liquor store operators."
The ACCC is also investigating the impact of the acquisition on the competitiveness of other independent supermarkets in the region. In particular, whether removing the Karabar store from the IGA network, and removing it as a wholesale customer of
The ACCC invites submissions from interested parties in response to the statement of issues by
The ACCC also invites customers of the SUPA IGA and Liquor Boss at Karabar to complete a short survey on their shopping habits at: https://consultation.accc.gov.au/accc/woolworths-karabar-consumer-survey/
The ACCC's final decision is scheduled for
The SUPA IGA Karabar is an independent supermarket which sells a range of groceries and liquor in an attached liquor store (trading as Liquor Boss), located in Karabar, NSW. Karabar is a small residential suburb approximately 2.5km from the town centre of Queanbeyan, NSW, which lies to the south-east of
SUPA IGA Karabar and Liquor Boss are owned by
The ACCC previously opposed Woolworths' proposed acquisition of the
Further detail on the ACCC's 2008 merger review, including the Public Competition Assessment, is available on the
Use this form to make a general enquiry. Media enquiries: Media Team - 1300 138 917, media@accc.gov.au
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(C) 2022 M2 COMMUNICATIONS, source