THE ACCC has given notice that Canberra’s own SuperBarn is selling a swathe of stores to Coles.
The Australian Competition and Consumer Commission will shortly commence a public review of Coles’ proposed acquisition of Supabarn supermarkets.
ACCC Chairman Rod Sims said: “Given Supabarn’s position as a significant independent supermarket chain, an important focus of the ACCC’s review will be whether its removal as a competitor would substantially lessen competition between supermarket chains. The review will also examine each of the individual local markets in which the Supabarn stores operate, and any effect on grocery wholesaling and supply markets”.
In a statement Superban confirmed the sale.
“For family reasons the Directors have decided to scale down.”
Employees will be “offered the opportunity to continue to work at their store”.
The store in Kingston is not being sold, and Supabarn express stores will continue to trade as normal.
The local stores under the hammer are:
- Civic,
- Wanniassa,
- Kaleen
- Crace,
- The store under construction at Casey
UPDATE: The Greens’ Shane Rattenbury has expressed concern about the competition implications:
ACT Greens MLA Shane Rattenbury has welcomed news that the ACCC is investigating Coles’ takeover of the majority of Supabarn supermarkets.
“I am very concerned that this sale could mean less competition for Canberrans, which is already dominated by Woolworths and Coles.
“Supabarn is the only independent chain with full-line supermarkets similar to Coles and Woolworths across the ACT. If this sale goes ahead, grocery prices could go up and people who want to shop around will have even fewer options.
“People have been raising these issues with me for years. In the last assembly, the Greens helped set up an inquiry into supermarket competition to tackle these issues,” Mr Rattenbury said.
“While the ACT can regulate the size and location of supermarkets, it can’t control who runs the supermarkets. Only the ACCC has the power to stop sales that reduce competition.
“I am pleased that the ACCC will investigate whether the takeover could lead to higher prices and lower quality. I will be writing to them to raise my concerns,” Mr Rattenbury said.
Mr Rattenbury said that Supabarn would be missed not only for their high quality independent produce, but also as a progressive retailer.
“Supabarn has brought badly needed competition to Canberra. It has also been a strong supporter of progressive retailing. They have backed egg-labelling laws, plastic bag ban legislation, and a Shopping Trolley system.
“This sale would rob Canberra of an innovative retailer – and make our supermarket duopoly even worse.”
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