* Coles, Woolies get 40c in each dollar spent
   * Dominance "obscene", says Nick Xenophon
   * Coles says it's reduced prices on 5000 lines

ALMOST 40 per cent of retail spending by Australian households now lands in the coffers of either Coles or Woolworths.  

New research prepared  shows that of the $242 billion in retail sales last year, $94.3 billion, or 38.9 per cent, is taken by one of the corporate giants' growing portfolio of retail brands.

The news will infuriate critics of the Woolworths/Coles duopoly and strengthen calls for harder-hitting anti-competitive laws.

The companies have been free to extend their interests in groceries, fuel, liquor, gambling, office supplies, electronics, general merchandise, insurance and hardware, sparking concerns that consumers will pay more.


"Almost 40 cents in every dollar we spend at the shops is now taken by a Woolworths or Wesfarmers-owned retail entity," Commonwealth Bank retail analyst Andrew McLennan said.

However, the Australian Competition and Consumer Commission said there was "nothing inherently anti-competitive about Coles (Wesfarmers) or Woolworths entering a new industry".

The ACCC last Thursday announced it would not oppose Woolworths Ltd's proposed acquisition of The Cellarmasters Group, an online and direct wine sales business.

Federal independent Senator Nick Xenophon said the retail giants had an "obscene level" of market dominance.  

"These companies fake the appearance of competition by using all these different retail brands but ultimately the dollars go back to the same two companies," he said.

"The current set-up ... gives the two supermarket giants unacceptable power over suppliers, because if you don't supply to Coles and Woolies on the terms the supermarkets want, suppliers can be effectively locked out of the market."  

Both companies have denied their dominance is bad for customers.

A Coles spokesman said the price of more than 5000 lines in stores had been reduced in the past 12 months.

"We have absorbed over $50 million worth of supplier price increases," he said.

A Woolworths spokesman said the ACCC had investigated the grocery industry and found it to be workably competitive.

The Gillard Government told The Sunday Mail legislation that "clarifies" powers for the ACCC would be reintroduced by the end of the year.

The laws lapsed last year in the Senate.

The Jansen family of Mermaid Waters could be an advert for the Coles Group.

Remco, 37, and Nikki, 36, estimate they spend about an eighth of their budget with the retail giant, with food from the supermarkets, plants and outdoor furniture from Bunnings and a Kmart barbie.

"I didn't know they were all part of one company, but I'm not really surprised," said Remco, a photographer.

"Grocery prices are similar but Coles is close. For petrol, I usually just go to whatever is nearest, but the Coles vouchers are an incentive.''

WHAT WOOLWORTHS/COLES OWN:  

WOOLWORTHS LIMITED
SUPERMARKETS: Woolworths, Thomas Dux Grocer
PUBS/CLUBS: ALH Group, Danks
ALCOHOL: Liquor Woolworths, BWS, Dan Murphy’s, Langton’s
FUEL: Caltex/Woolworths
GENERAL MERCHANDISE: Big W
ELECTRONICS: Dick Smith, Tandy
COLES/WESFARMERS
SUPERMARKETS: Coles, Bi-Lo
PUBS/CLUBS: Hedley Hotel Group, Talbot Hotel Group
ALCOHOL: First Choice Liquor Superstore, Liquorland, Vintage Cellars
FUEL: Coles Express
GENERAL MERCHANDISE: Target, Kmart
SPECIALITY: Bunnings Warehouse, Officeworks, Harris Technology
INSURANCE: WFI, Lumley Insurance Australia, OAMPS

I've said it before, but Aus NEEDS to introduce Anti-Trust
laws similar to the US, to allow for the forced break-up of
Coles and Woollies, and to force them to divest themselves
of ALL the businesses they've bought-up to stifle competition.

AND take away their licence(?) to sell fuel.

And we need to do it NOW. 

It iis ESSENTIAL that this duopoly be spliit-up.

It_is_the_Darkness wrote on Apr 24^th, 2011 at 11:53am:




I am not too sure what would work to be honest... but I dont think we have a big enough population really to try and spread the wealth..

I doubt that anyone can force a company to seel what it has paid for..

however I do think the general public should be aware of whom they are supporting... for instance..

these big guys should display their logos somewhere on their diversified business..



I think most are aware that Big W is wollies.. and Kmart Coles..

however what about.. Bunnings and the clubs.. and the liqour stores???..

and even insurance companies.. how many would know??? and we should know its our right to know.

and if they are not ashamed of their business ethics.. well tell us that you own this business.... dont hide it.