Retail battles test for influence

The debate over the future of Western Australia’s retail sector has provided a keen insight into political and community influence in the state.

The current issue is the proposal by Woolworths to acquire 16 Action supermarkets (including two development sites) as part of the break-up of Foodland Associated.

This follows the long-running debate over the extension of retail trading hours, which was finally killed by the February referendum when a majority of Western Australians rejected extended trading hours.

There has also been a related debate over extended trading hours for retail liquor stores, a proposal quashed by the Gallop Government following lobbying by the hotel industry.

A plethora of lobby groups emerged during these debates, each purporting to speak for a segment of the retail sector.

Groups such as the WA Independent Grocers’ Association, the Independents Action Group and the WA Retail and Small Business Association were successful in their fight against extended trading hours, using a mix of political lobbying, public relations and advertising to get out their message.

Some of these groups have been active in the campaign against the proposed Action purchase, which is subject to scrutiny by the Australian Competition and Consumer Commission.

The campaign has won bi-partisan political support, with Agriculture Minister Kim Chance and his Opposition counterpart, Paul Omodei, both raising concerns about Woolworths’ plans.

They held meetings this week with the ACCC, which has released the locations of stores to be acquired by Woolworths; information that neither Woolworths or Foodland chose to release when they unveiled the deal.

The campaign has also united retail groups, such as the WA Independent Grocers’ Association and the WA Retailers’ Association, with farming groups, such as the WA Farmers Federation.

Farming groups speak for food suppliers who believe they will be squeezed by the increased market power of Woolworths in WA.

Retailers are also concerned about the combined market power of Woolworths and Coles, saying that WA differs from the rest of the country in having strong ‘independents’ with about 40 per cent market share.