Australia's consumer watchdog blocks new Coles supermarket in Kalgoorlie

The Australian Competition and Consumer Commission (ACCC) has blocked the construction of a new Coles supermarket in Kalgoorlie, a decision welcomed by local business leaders. The regulator exercised new powers to prevent the development near the Kalgoorlie-Boulder Airport, stating it would likely harm smaller competitors.

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We are pro development when it is needed but the chamber doesn't think that we need a second Coles in that location when there is already an existing IGA in place to service that area.

Simone de Been, CEO of the Kalgoorlie-Boulder Chamber of Commerce and Industry, argued that the city's population of 30,000 does not justify another supermarket. She noted the recent opening of a Spudshed and the existing IGA and Coles, suggesting a new store would force another to close.

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There are six supermarkets in Kalgoorlie-Boulder already and our population really hasn't grown that much.

Coles, which operates 860 stores nationwide, disagreed with the ACCC's assessment, believing it underestimated Kalgoorlie-Boulder's growth potential. The ACCC deputy chairman Mick Keogh stated that the new store would have captured about 40% of the market share, likely pushing an independent grocer out of business.

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When we looked in a great deal of detail at this transaction, it would likely have resulted in one of the independents leaving the market.

Kalgoorlie MLA Ali Kent called the ACCC's decision unprecedented and expressed surprise, though she acknowledged the need for population growth to support future development. Coles has 14 days to appeal the decision to the Australian Competition Tribunal.

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It's a surprise because it's an unprecedented move [by the ACCC].