Coles holds 17 sites with no DAs, denies land-banking
Sam McKeith and Jack Gramenz |
Supermarket giant Coles has revealed it has more than a dozen freehold sites where a development application has not been launched as the competition watchdog probes the issue of land-banking in the concentrated sector.
The alleged practice of the dominant chains buying sites to block competitors moving into the same location has formed part of a supermarkets inquiry, which is holding its last public hearings on Friday.
Over two sessions, Coles executives have denied engaging in land-banking, saying that identifying a gap in the market, procuring a site and planning a development could take up to seven years.
On Friday, property manager Fiona Mackenzie said of 42 freehold sites the company held across the country, 17 had not been subject to development applications.
“Of those 17, there are three types,” she said, adding they comprised smaller parcels of land waiting for amalgamation, some in process of being rezoned and a small number “awaiting population”.
Asked on Thursday about a site at Maylands in Perth that had been held by Coles since 2008, the company rejected it represented land-banking given it was earmarked for a large liquor store.
“An IGA has opened immediately opposite and an Aldi close too,” Ms Mackenzie said.
The Australian Competition and Consumer Commission in September said it had received submissions raising concerns about land-banking, but it was yet to form a view.
IGA supplier Metcash and peak body NSW Farmers were concerned about the alleged practice.
Coles and Woolworths – which dominate two-thirds of the grocery market – can afford longer development timelines than independent grocers and snap up land they may not develop for some time, Metcash said in a submission to the commission’s interim report.
Counsel assisting the inquiry Naomi Sharp also quizzed Coles executives about its loyalty programs on Friday, suggesting they discouraged shoppers from going elsewhere.
“It is the intention that customers choose to shop Coles,” chief customer officer Amanda McVay replied.
The two-week public inquiry is part of the ongoing ACCC probe into pricing practices of supermarkets and the relationship between wholesale and retail prices.
The watchdog’s final report is due to go to Treasurer Jim Chalmers by February 28, 2025.
The government is trying to keep a lid on prices at major supermarkets amid a cost-of-living crisis and stubbornly high inflation ahead of an election in the coming year.
AAP