WESTERN Australia’s retail trading hours may remain unchanged until after the next election, but independent retailers are bracing themselves for potential industry fall-out caused by Coles Myer’s entry into the fuel market in the State.
WESTERN Australia’s retail trading hours may remain unchanged until after the next election, but independent retailers are bracing themselves for potential industry fall-out caused by Coles Myer’s entry into the fuel market in the State.
Major retail chain Coles Myer is planning to convert 80 Shell fuel stations in Perth and outlying areas into Coles Express service stations as part of its national roll-out of its Shell-alliance fuel discount offer that is expected to be up and running by mid 2004.
What has independent retailers concerned is that they believe the Coles Express business model will consist of a medium-sized supermarket that will be able to trade 24 hours a day seven days a week.
The industry fears that this loophole in retail trading hours laws will have a severe impact on the independent retailers and suppliers.
Under current retail trading hours restrictions there are broad definitions of what goods can be sold at service stations out of trading hours.
Even with these restrictions – which ban the sale of canned meat, seafood, fruit or vegetable and fresh meat packaged in quantities above 500 grams but allow the sale of all other food – it is understood that the Coles Express service stations could carry two thirds of Coles’ normal supermarket range.
According to an industry source, once the Shell stations are re-branded into Coles Express these service stations/supermarkets they are expected to launch a price war against the independents retail stores, using Coles’ increased buying power to beat suppliers in price.
In Victoria Coles Myer has had great success with Coles Express/Shell stations since their introduction in July this year, experiencing better than expected sales with the model – prompting it to regard the Coles Express convenience store as a significant new business opportunity.
When fully rolled out Coles Express is expected to generate more than $3 billion in fuel and convenience store sales nationwide.
A Coles Myer spokesman said that at this stage the fuel discount offer was available in Victoria but from December 1, it would be rolled out in New South Wales, the Australian Captial Territory and Tasmania.
“The precise timetable for the launch into WA has not yet been set,” he said.
The spokesman said further details for WA would be released when they were finalised.
Retailer Woolworths and its fuel partner Caltex are moving into a discount fuel battle with Coles Myer, announcing plans to rebrand another 430 sites in the coming months.
Mobil has already revealed that it plans to exit fuel retailing in this State because of the rising competition.
Independent Action Group convenor Greg Dean believes that the move by major retailers into the fuel market spells the death knell for family-owned business in WA.
Mr Dean said WA’s unique small business infrastructure would be decimated if national retailers were to further drive market share away from independent retailers.
Department of Consumer and Employment protection director of consumer services David Hillyard said the Coles Express model was a response to what the trading hours legislation would allow and that any breaches of the act would lead to prosecution.
