Basket case: ACCC calls on small businesses to share their views for supermarket competition inquiry

Does your business supply goods to Australia’s major supermarkets, or does your independent grocery business compete with corporate giants?

If so, the Australian Consumer and Competition Commission (ACCC) wants to hear from you for its inquiry into the supermarket sector.

The competition watchdog on Thursday called for submissions to its inquiry, which will delve into the pricing practices of Australian supermarkets, how they treat suppliers, and whether the sector should be more competitive.

A new issues paper spells out exactly what the ACCC is looking for — including insights from the small businesses that either supply the major supermarkets or directly compete with them.

It invites members of the business community to comment on “competitive constraint” in the sector, whether small and independent retailers can meaningfully differentiate their offerings, and if the entry of new businesses into the sector has changed the competitive landscape.

More pointedly, it also seeks commentary on the extent to which supermarkets and wholesalers can acquire grocery products from their suppliers for a lower price, or on better terms, than their smaller competitors.

In a statement, ACCC deputy chair Mick Keogh said this data will feed into its investigation of supermarket pricing practices.

“We will be using our legal powers to compulsorily obtain data and documents from the supermarkets themselves, but consultation with consumers and grocery sector participants is an important first step in our inquiry,” he said,” he said.

Interested parties have until April 2 to share their views with the ACCC.

The ACCC inquiry is just one of several major inquiries or investigations into the domestic supermarket industry, which is dominated by two key players: Coles and Woolworths.

A Senate committee is currently consulting on supermarket pricing practices, with a suite of public hearings set for early March.

Concurrently, the Treasury has tapped esteemed economist and former Minister for Small Business Craig Emerson to investigate the Food and Grocery Code of Conduct, a voluntary system designed to safeguard small suppliers in their dealings with major supermarkets.

The concentration of inquiries and investigations — and the pain many Australians are feeling at the checkout — coincides with significant media attention on the supermarket sector.

Last week, when confronted with the view from former ACCC chief Rod Sims that Australia has one of the most concentrated supermarket sectors in the world, Woolworths CEO Brad Banducci temporarily walked away from a Four Corners interview.

Although he soon returned, the incident only drew attention to the issues under investigation by the supermarket inquiries.