Wednesday, August 15, 2012

Australia: IGA is no small business, retorts "duopoly"


Source: The Shout
By James Atkinson
15/08/2012

The Australian National Retailers Association (ANRA), representing Coles and Woolworths, has rejected a report by independent grocers and liquor retailers calling for regulators to take action against the continued expansion of the chains.

The Let's Have Fair Competition report released this week by the Master Grocers Australia/Liquor Retailers Australia (MGA) argues that unless the regulatory authorities take action against the national retailers, "Australians will suffer dire consequences".

"There will be no competition, prices will escalate and freedom of choice will be a thing of the past," it says.

But ANRA CEO Margy Osmond said the MGA represents the IGA group of retailers and far from 'fair competition', what they recommend will tilt the playing field in their favour, at the expense of consumers.

"It is time that IGA came out from behind this myth they are a small business - they have a substantial slice of the grocery and liquor market in Australia," she said.

"Aldi, a foreign owned entrant to the market, has grown from zero to 300 stores in less than a decade, a clear indication of the demand and the level of competition."

Osmond argued that MGA's call for more regulation would jeopardise the employment more than 300,000 Australians.

"The Australian supermarkets are leading the charge to bring the lowest possible prices to consumers, while still supporting local growers and manufacturers," she claimed.

But Jos de Bruin, CEO of MGA/LRA said the smaller independents are not getting a 'fair go'.

"It's time to take action against this powerful Goliath that is growing stronger every day. If the regulators sit back and do nothing to foster fair competition in the grocery and liquor retail industry, then the Australian consumer will literally pay the price in the long term," he said.

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