ECONOMY AUSTRALIAN NEWS Big business is fighting back against a proposal that will see competition laws expanded to potentially make competitors partially responsible for the financial plight of their rivals, The Australian Financial Review reports. The proposal, being backed by competition regulators and Small Business Minister Bruce Billson, would result in an ‘effects test’ to ensure companies consider the impact of any business decision they make on the viability of their rivals. Among the parties opposed to such a move are Qantas Airways, Woolworths, Wesfarmers, Caltex and Foxtel, with the Business Council of Australia hitting back at the plan. “This sort of legislation causes uncertainty, inefficiency and discourages innovation,” Danny Gilbert, the BCA’s competition inquiry taskforce chair and Gilbert + Tobin managing director, told the AFR. The effects test is a possible recommendation to the stem from the current competition review being carried out by a team led by Ian…

Sue Mitchell September 2, 2014 The Age Supermarket chain Coles plans to cut between 500 and 600 jobs from its head office in Melbourne as part of a renewed efficiency drive aimed at freeing up funds to reinvest in reducing food and liquor prices. The job cuts are expected to be announced in Melbourne on Wednesday by new Coles managing director, John Durkan. Coles was not immediately available to comment on the job losses, which represent almost 20 per cent of the 3000-strong workforce at Coles’ Tooronga headquarters. However, Mr Durkan told investors last month that, faced with continued cost pressures, Coles needed to simplify and reduce its cost of doing business. “To enable further investment in value in fresh food, we will continue to drive productivity and efficiency through our business and we have significant opportunity to do so through simplifying our business,” he said. It is understood that…

Eli Greenblat September 3, 2014 The Age Woolworths and Coles’ decision to plough tens of millions of dollars into enhancing their online capabilities is finding fertile ground, with groceries and liquor clocking up faster growth for online sales than any other retail category. It is older Australians, aged over 65, who are doing much of the heavy lifting, especially when it comes to alcohol sales, with that age group spending more on beer, wine and spirits online than younger Australians. The latest National Australia Bank Online Retail Sales Index shows shoppers’ enthusiasm for clicking on their laptops, iPhones or tablets to buy a box of fruit or case of wine helped drive a 15.9 per cent increase in online sales for the 12 months to July. It made the groceries and liquor category the fastest-growing segment, ahead of department and variety stores, which saw online sales expand by 11.5 per…

Peter Strong 03 September 2014 SmartCompany Contrary to the views of Peter Costello, Graeme Samuel and Stephen King expressed recently, the need for an effects test in competition law is well past its due date. As Australian Competition and Consumer Commission commissioners Jill Walker and Roger Featherstone have demonstrated, the use of an effects test is commonplace around the world and it is needed in Australia. This is a view supported by Allan Fels, the first chairman of the ACCC, who in a speech earlier this year at Melbourne University also stressed the need for change and for Australia to reflect the approach of most other countries. What Samuel misses is the bigger picture. The reality is we have a productivity problem in this country and as productivity remains low then our standard of living must start to fall. One reason why that productivity is falling, and has been since…

Sarah Halzack September 3, 2014 The Washington Post A shopper uses his smartphone to compare prices at Toys R Us in New York. (AP Photo/Seth Wenig) Several years ago, as online shopping grew in popularity, traditional retailers grew deeply concerned about “showrooming” –when consumers visit brick-and-mortar stores to test out products but ultimately make their purchase online from a competitor. Now, a new study from Nielsen adds to a growing body of research that shows that showrooming is not, in fact, the biggest factor upending traditional shopping patterns. Nielsen surveyed more than 30,000 consumers across 60 countries for itsreport on the state of e-commerce, which it released last week. And while 51 percent of respondents said they browse products in stores before ultimately buying them on the Web, an even larger number said they do the opposite: 60 percent of consumers said they often browse products online before ultimately purchasing…