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Small Business News

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Inquiry to unpack market power of big box retailers


The Nationals have initiated a Senate Inquiry into the conduct of Australia’s large format  retailers after a motion put forward by NSW Nationals Senator Ross Cadell was endorsed in the  Senate this afternoon.

The inquiry will lift the lid on dodgy practices by ‘Big Box’retailers that  are ripping off Australian’s during a cost-of-living crisis. 

This inquiry was a direct recommendation from the Supermarket Prices Inquiry earlier this year - a recommendation not supported by the Albanese Labor Government.

The Albanese Labor Government has been too slow to reform competition settings – whether it is aviation, supermarkets, or banking – and they have been caught asleep at the wheel. Again.
 
“During the recent Supermarket Inquiry we heard shocking testimony from witnesses about the  increasing market power of ‘Big Box’retailers, who have been accused of cartel like behaviour”  Senator Cadell said. 

“It is staggering that ‘Big Box’retailers are offering grocery and greenlife products but are not  covered by the food and grocery code of conduct.  

“This inquiry will investigate and recommend the powers needed to clean this industry up,  improve competition, and create a fairer, more transparent marketplace for our primary  producers and suppliers.

“We know that in local communities around Australia, Bunnings has a market share of more  than 70% of greenlife and this market dominance squeezes customers and suppliers.

“With no requirement to be bound by the Code, customers are exposed to the risks of rising  market power without competition.  

“The system in which our big box retailers operate must prioritise value for consumers…  Instead, it seems that as prices increase at the checkout, and margins shrink for the suppliers,  only the big box boys get richer.

“The inquiry will open for submissions in the coming days and we encourage customers and  suppliers who have been let down by the Albanese Labor Government to come forward.”

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