Should Woolworths be allowed to take over Karabar IGA? The ACCC wants to hear from you
The Australian Competition and Consumer Commission is seeking feedback from Queanbeyan residents regarding Woolworths’ proposed acquisition of the SUPA IGA Karabar.
KRNC Building Group has been working on a major renovation of the Karabar Shopping Mall for the past six months, where the SUPA IGA is currently located. The proposed takeover would see Woolworths moving into the space where the independent grocer now resides. The IGA is popular with Queanbeyan residents for its fresh fruit and vegetable, delicatessen, bakery and European delicacy sections.
Woolworths and SUPA IGA Karabar currently compete in supplying groceries to the residents of Karabar and Jerrabomberra. Woolworths already operates two supermarkets within a 5km radius of SUPA IGA Karabar, in both Queanbeyan and Jerrabomberra.
“The ACCC has outlined preliminary competition concerns with Woolworths’ 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,” ACCC Commissioner Liza Carver said in the statement, issued last week.
“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.
“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 ALDI.
“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 invites submissions from interested parties in response to its statement by 12 January 2023.
The ACCC also invites customers of the SUPA IGA and Liquor Boss at Karabar to complete a short survey on their shopping habits at:
http://consultation.accc.gov.au/accc/woolworths-karabar-consumer-survey/
The ACCC’s final decision is scheduled for 23 March 2023. More information, including the statement of issues, is available at: Woolworths – SUPA IGA Karabar
About the Author: Holly Winchester
Part Jennifer Coolidge, part Jennifer Garner (gaudy and geeky), Holly idolises Dolly Parton and Princess Di and loves NRL. When she's not creating killer content, you’ll find Holly at the Maccas drive thru getting her chai latte fix or buying 1990s memorabilia for the walls of her Googong home. Specialist subject: the Woolies carpark.
