Aldi grabs more marketshare in Australia … ACCC declares JJ Richards SME contracts unfair and void … Domino’s acquires $100 million German chain

Discount retailer Aldi has snatched up more marketshare in Australia’s $100 billion grocery retail landscape, growing to 8.6% according to a recent IBISWorld report.

AAP reports this puts Aldi further ahead of competitor Metcash, which currently holds a 7.5% market share, and analysts believe this will continue to decrease.

“The collective revenue from Metcash-supplied supermarkets has declined in 2016/17 and is expected to decline in 2017/18,” IBISWorld senior industry analyst Nathan Cloutman said in the report.

“Aldi is rapidly expanding in the industry, in particular the company’s move into WA and SA in 2016 has helped the company boost its market share recently.”

Australia’s supermarket duopoly continues to thrive, with Woolworths nabbing a 36.8% marketshare over competitor Coles, which has a 30.9% marketshare.

ACCC declares waste management business contracts void

The Federal Court has declared eight terms in contracts used to engage small businesses by waste management business JJ Richards are unfair and therefore void as a result of action by the Australian Competition and Consumer Commission (ACCC).

The eight terms include:

• binding customers to subsequent contracts unless they cancel the contract within 30 days before the end of the term;
• allowing JJ Richards to unilaterally increase its prices;
• removing any liability for JJ Richards where its performance is “prevented or hindered in any way”;
• allowing JJ Richards to charge customers for services not rendered even when caused by reasons beyond the customer’s control;
• granting JJ Richards exclusive rights to remove waste from a customer’s premises;
• allowing JJ Richards to suspend its service but continue to charge the customer if payment is not made after seven days;
• creating an unlimited indemnity in favour of JJ Richards; and
• preventing customers from terminating their contracts if they have payments outstanding and entitling JJ Richards to continue charging customers equipment rental after the termination of the contract.

The company has been ordered to stop relying on these unfair terms in existing contracts and cease to use the terms in any future contracts.

“The Court’s decision serves as a reminder to large businesses to review their standard form contracts and make sure they don’t include any unfair terms. The ACCC will not hesitate to take appropriate action to ensure large businesses are complying with the unfair contract terms provisions,” ACCC deputy chair Dr Michael Schaper said in a statement.

Domino’s locks down $100 million acquisition of German chain

Australian pizza store giant Domino’s will continue its expansion into European markets through the €32 million ($48 million) acquisition of German pizza chain Hallo Pizza, locking down 170 stores reports Fairfax.

An additional €20-30 million will be spent on rebranding and store conversion, with existing stores operating on “a transitional basis” until they can be converted into Domino’s stores.

“The acquisition of Hallo Pizza strengthens our leading market position and assists [Domino’s Pizza] to accelerate towards achieving its target of operating 1000 stores in Germany,” Domino’s managing director Don Meij said in a statement to the Australian Securities Exchange.

“We are excited to share our innovations with Hallo Pizza franchisees to drive the customer experience and higher sales under the Domino’s system.”

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