In a formal hearing before the Competition Commission, the Association of Convenience Stores (ACS) identified “big four” buying power as the root cause of the uneven playing field in the grocery market.
ACS director of public affairs, James Lowman, who led the delegation to the Commission, told the inquiry: “This investigation must uncover the differentials between the buying prices achieved by the [major multiples] and those paid by convenience retailers and wholesalers.”
The ACS argued that big supermarket buying power was responsible for number of important problems in the market, in particular, predatory price flexing and local price manipulation, a reduced choice of products and retail fascias and abuse of the land-planning system.
Lowman said: “We have established a constructive relationship with the Commission, and we received a fair hearing from the full panel. What matters now is that the Commission use their powers to get information on relative buying prices. Armed with this data, the Commission can begin to address the central issues of this inquiry.”
ACS confirmed that it would be submitting further evidence to the Commission.
“We believe we are building a compelling case for the Commission to take action,” Lowman added.
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