Senate launches Australia’s ‘big box retailers’ inquiry   

The New Daily
Aug 26, 2024


"Big box" retailers will be grilled by senators in an inquiry.



A new Senate inquiry, similar to the one that imposed a grocery industry code of conduct on supermarkets, will put retailers like Bunnings, JB Hi-Fi and Harvey Norman under the microscope by the end of the year.

The inquiry will examine the role of Australia’s “big box retailers”, which the Senate Standing Committee on Economics defined as “a retail store that occupies a large physical footprint and offers a variety of products and a broad product mix to its customers”.


What will it look like?
Brands like JB Hi-Fi, Harvey Norman and The Good Guys will fall into this category, with Bunnings already being flagged as a star witness by Nationals senator Ross Cadell after the company “sent some PR spinners” to the supermarket inquiry.

The committee plans to interview senior executives from major hardware chains and it could impose a similar code of conduct that is now in place for supermarkets.

Those hearings resulted in the CEOs of Woolworths and Coles receiving a grilling from senators, with Woolworths CEO Brad Banducci later expediting his exit from the company.

Woolworths
Brad Banducci was threatened with jail time at the inquiry into the market dominance of Coles and Woolworths. Photo: AAP

Why is there an inquiry?

The economics committee successfully imposed a grocery code of conduct on the supermarket duopoly in Australia that could result in fines of up to $10 million if it is broken.   

It is now turning its eyes to large retailers, with a similar code of conduct being floated.


Senators voted for an inquiry to be referred to the committee in August, with a report to be produced by February, shortly after Bunnings suppliers accused the Wesfarmers-owned business of abuse of market power.

The inquiry will examine the market behaviours of “big box” retailers, including “price negotiation practices, abuse of market power and engagement with suppliers, in particular horticultural producers”.

At the supermarket inquiry, Bunnings sent its manager for ethical sourcing and category manager for green life products.

They defended the company not offering minimum purchasing commitments, arguing they should not be covered by the grocery code.

When will it be held?
A final report will be handed down by February, but between then the committee will hold hearings to hear testimony from suppliers, the public, experts and the business representatives.

The inquiry is also seeking submissions from “before Christmas” that have been flagged by the committee’s members.

Submissions into the inquiry are due by September 17.