Coles moves in on Bunbury IGA

Supermarket giant Coles has been given the go-ahead by the Australian Competition and Consumer Commission to buy Bunbury Forum Progressive Supa IGA.

The consumer watchdog began a review earlier this year into the proposed buyout of three Progressive Supa IGA stores by Coles.

The review was based on concerns the move would reduce competition in the three areas — Bunbury, Halls Head and Dianella.

Last week the ACCC announced it would not oppose Coles buying the stores.

ACCC Commissioner Jill Walker said in a statement the commission did not oppose the acquisitions because in each of the markets there was at least one other major and independent competitor as well as Woolworths.

The purchase of the Metcash-owned IGA stores raised community concern over the loss of localised produce, typically stocked by the supermarket chain.

“The ACCC also took into account information that suggests that Aldi would be likely to enter some of the relevant markets in the coming years as part of its expansion into Western Australia, ” Dr Walker said.

The commission also took into account the declining sales of the IGA stores and the possibility they could be closed if not bought by Coles.

The Bunbury Forum Progressive Supa IGA store will begin trading as Coles early next year.

Coles State manager Cathi Scarce said Coles would continue to employ Progressive Supa IGA’s staff. She said additional positions would be filled by a mixture of new recruitments from the area and by existing Coles employees.

The purchase of Busselton Progressive Supa IGA by Coles was included in the review but further information would be provided to the commission before a recommendation was made.

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