Market power of retailers like Ikea, Bunnings and Petstock being scrutinised by Senate inquiry

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Bunnings News

Petstock,Petbarn,Woolworths

Bunnings is Australia's most trusted brand. But allegations the hardware chain has been abusing its market power have prompted a Senate inquiry, that is set to scrutinise the market power of many large format retailers.

The owner of two independent pet stores around Melbourne suspects price sensitive customers are ditching his small business for the large format stores and websites run by competitors Petbarn and Petstock.

It's the same with flea treatments, which used to make money for Planet Pets. Today, the independent retailer is selling these packs of medicine at just 10 per cent margin in a last-ditch bid to compete.Pet store owner Naman Thakar can't compete with big retailers on the price of dry food and fears he is losing customers.

The inquiry aims to interrogate whether these large format retailers are standing over their suppliers and if they have been abusing their significant market power. now proposing new laws that will require major merger and acquisition proposals to seek approval from the competition regulator.Ms Asher — who worked in supply logistics for years before turning to academia — says a lack of competition is problematic, because it increases the stand-over power that retailers have over their suppliers.

On a comparison of a per kg basis, we sell the product at $2.19 per kg, Woolworths for $3.13 per kg and Mitre 10 for $3.00 per kg. "The batteries are compatible for that brand, but generally not between the brands," Mr Penhalluriack says.

 

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