ACCC eyes hardware battle with Woolworths

John Durie
The Australian
June 25, 2012

THE ACCC appears to be preparing for another possible test of its powers to counter the expansion of the big two supermarket chains, this time in the hardware market.

Late last week, the ACCC again delayed consideration of the proposed Woolworths takeover of Ballarat-based hardware group G Gay & Co pending the receipt of further information.

G Gay owns three hardware stores in the Ballarat area under the Home Hardware banner. Woolworths, through its Lowe’s joint venture, is planning to open a Masters store in the region.

The ACCC’s concern is that Woolworths is taking out a competitor as it sets up a big-box store in the Victorian regional centre. There are two Bunnings stores in the region.

In a recent speech in Sydney, ACCC chairman Rod Sims made it clear he was targeting the big two supermarket groups and cited hardware and liquor as areas of concern. The ACCC was preparing a case to stop Woolworths buying a bottle shop in Launceston after an 11-month inquiry but the retailer withdrew from the purchase.

This week, the ACCC is also due to decide whether to clear the purchase of 24 hotels and bottle shops in NSW by Woolworths from the Laundy family. The investigation has so far cleared all but four of the purchases.

The growing dominance of Woolworths and Wesfarmers — which owns Bunnings and Coles — has attracted some political concern.

In his Sydney speech, Mr Sims made it clear that he would keep a close watch on the big two retailers and would maintain a strong vigil, as dictated by the law.