The price battle between Coles and Woolworths is benefiting families on a budget, but the rivalry between the two supermarket giants is as much a turf war as it is a pricing game.
With a number of new sites earmarked for retail development in Penrith, the Australian Competition and Consumer Commission (ACCC) is investigating a proposal by Woolworths to acquire Glenmore Ridge Village Centre from current owners, Stockland.
The ACCC commenced investigations in June to determine whether the proposal would inhibit competition in the supermarket industry – currently Glenmore Park residents already have access to a Woolworths at Glenmore Park Town Centre and an ALDI is due to open in 2014.
“The ACCC’s preliminary view is that the proposed acquisition is likely to result in a substantial lessening of competition in the local retail supermarket market,” the ACCC said in a statement.
But Woolworths has defended the proposed acquisition as an investment in the local community.
“Ultimately it is up to the consumer to decide where they want to shop. We have proposed the development of a supermarket, between six to 10 specialty stores, which will provide local services and town amenities, and convenient single-level car parking for the site,” a Woolworths spokesperson said.
The ACCC is now calling for community feedback on the issue.
