A West Footscray IGA operator has taken supermarket giant Woolworths to Australia’s competition regulator over its expansion plans in the neighbourhood.
Schroeder’s IGA has lodged a complaint with the Australian Competition and Consumer Commission (ACCC) arguing that Woolworths’ proposal to build a supermarket at 495-507 Barkly Street, directly adjacent to their store, is an abuse of market power.
Schroeder’s complaint cites from the commonwealth competition and consumer act, which sets out to protect the community from market dominance, market abuse and lessening of competition.
The complaint asks the ACCC to either regulate and or seek an injunction against Woolworths to stop it building a supermarket in West Footscray in order to preserve existing competition.
Shroeder’s complaint, which is supported by the Master Grocers Association of Victoria and West Footscray Traders Association, is also made on behalf of three ethnic supermarkets on Barkly Street, who like the IGA, argue that a Woolworths supermarket would destroy their businesses, leading to job losses and the loss of a wide range of grocery items that are not stocked by Woolworths.
The complaint also argues that dozens of local producers who would have their supply chains constrained by the loss of the independent supermarkets.
“Schroeders IGA has operated in West Footscray for over five years (building on a 90-plus year’s tradition of independent supermarket open at this site) and recently went through a $4.5m upgrade, bringing it right up to the forefront of Australia retail practice and service,” said Schoeder’s IGA owner Brendan Schroeder in the complaint.
In a statement to Star Weekly, a Woolworths spokesperson said feedback from community consultation on the proposal indicated that West Footscray locals wanted more retail choice.
“When we develop a new store, we tailor its range based on the demographics of each local community and changing customer demand – Footscray will be no different,” the spokesperson said.
Woolworths, through their property arm, Fabcot, are already in a dispute with Schroeder’s IGA, Maribyrnong council and other local businesses in relation to the West Footscray development.
A decision from the Victorian Civil and Administrative Tribunal on this matter is still to be handed down.
The ACCC complaint is made under different laws and on different grounds.
