ACCC and the Rudd Government getting serious about Retail Competition –about time!
Restrictive lease covenants out – first stage; now for real competition in retail space availability
delivered by Harmonised Four Pillars Retail Lease Legislation and State Retail Planning and Zoning reform via COAG
supported by the ACCC…?

The announcement that the ACCC has brokered a deal with the giant supermarkets eliminating restrictive lease covenants is only the first victory in the battle The RETAiL Alert Group has been waging to re-balance competition in the Australian retail sector.

The RETAiL Alert Group congratulates Graeme Samuel and the Minister for Competition and Small Business Craig Emerson for these changes – however we are putting the ACCC and the Minister for Competition and Small Business on notice that in no way will the these welcome reforms stop the push for genuine competition for retail space in Australia’s Shopping Centres nor will it stop the push for Four Pillars Retail Lease Legislation and State Retail Planning and Zoning reform via COAG supported by the ACCC…?

It is hoped that no deal has been done with the major retailers and the Australian Shopping Centre Industry on proposed Obligation to Divest and Creeping Acquisitions Legislation – Australia has to have some form of anti-trust competition regulation to stop delivering further concentration of retail spending power into the hands of Australia’s giant retailers.

Australian Retailers Association (ARA) said it welcomed news the ACCC will phase out all restrictive provisions in supermarket leases.

ARA Executive Director Russell Zimmerman has congratulated Coles and Woolworths on a cooperative negotiation that will put an end to anti-competitive lease arrangements limiting consumer choice of supermarket retailers.

"An open retail market free from restrictive and anti-competitive leasing arrangements provides greater choice for consumers in regards to product and price in one location.
"Today's announcement allows new entrants to Australia's supermarket and grocery sector, including ALDI, to take out leases in shopping centres where they have previously been excluded.
"The ARA now calls on the Rudd Government, COAG and the ACCC to support harmonised lease legislation across all states to allow equal and fair access to shop space on competitive terms for all retailers," Zimmerman said.

As Senator Barnaby Joyce has said;

“Choice, most would think, is a number greater than two and if we do not have the courage to talk about the obvious elephant in the room then what a sad legacy we will leave for Australia’s economy in the future.”

“You don’t need to have written a PHD on Keynes to understand that once an entity dominates the market place then it extracts a premium in price from you by using its market share, rather than its dynamism.“

“The result is the consumer ends up with a stifled, inefficient market which doesn’t allow others to participate in it, a bad price for consumers and a tepid nondescript drone that stands in place for entrepreneurial flair.”

Frank Zumbo says “Friday’s announcement falls well short of what’s needed to deal with the market dominance of Coles and Woolworths”.

The RETAiL Alert Group does congratulate Graeme Samuel and the Minister for Competition and Small Business Craig Emerson for these changes – however we are putting the ACCC and the Minister for Competition and Small Business on notice that in no way will the these welcome reforms stop the push for genuine competition for retail space in Australia’s Shopping Centres nor will it stop the push for Four Pillars Retail Lease Legislation and State Retail Planning and Zoning reform via COAG supported by the ACCC…?

Over the next few weeks expect follow up articles on this issue.

To provide comment and input on this important Australian Retail Sector issue email Australian Retail Sector Competition Reform.

Tony Standley
Principal
The RETAiL Alert Group (Australia)
Mobile +61 (0)41 924 0497
e-mail info@adsass.com.au
Fax +61 (0)2 9987 0633
Website http://www.retailalert.com.au
 
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