Bunnings has been accused of ‘anti-competitive’ conduct over a secret plan to buy up at least seven Miter 10 stores.
Scott Marshall, the outgoing CEO of Metcash’s food division, slammed Bunnings in a recent submission to the federal parliament’s select committee on the cost of living.
In addition to the grocery wholesale business, Metcash owns the Miter 10 hardware chain, with stores run by individual owners as part of a national cooperative.
Mr Marshall told the committee that large companies tried to buy up independent Miter 10 stores and pinned the ‘anti-competitive’ practice mainly on Bunnings.
“Currently, Metcash is aware of Bunnings writing to at least seven Miter 10 companies asking them to consider entering into negotiations to sell their store to Bunnings,” he said in his submission.
Bunnings has been criticized for ‘anti-competitive’ behavior after writing to seven Miter 10 owners to convince them to sell
The last time Bunnings acquired one of Miter 10’s independent hardware stores was in 2019 in Hamilton, Victoria
Mr Marshall said other major retail chains such as Coles, Woolworths and Endeavor Group were also trying to capture smaller independent stores in areas where they wanted to expand.
He said Metcash often tried to fend off these “competitive takeovers” by buying stakes in the smaller retailers before the big players stormed in.
He listed 22 recent cases of independent companies in the grocery, hardware and beverage industries being bought out by major chains.
These included companies such as Endeavor, Bunnings and Woolworths buying up independent supermarkets, hotels and hardware stores.
“In most, if not all cases, the acquirer already had a significant presence in the local area or adjacent areas, as well as being a dominant national provider,” said Mr. Marshall.
He suggested that these “creeping acquisitions” had affected the cost of living by narrowing consumer choice.
Mr. Marshall added that the impact of national chains buying up these smaller stores affected Metcash’s wholesale network.
Despite the alleged approaches, the last time Bunnings successfully acquired an independent Miter 10 store was in 2019, in Hamilton, Victoria.
Two weeks ago, Daily Mail Australia revealed that an independent Miter 10 store in Byron Bay was closing for good.
The closure makes it the latest victim of the so-called big box business – after an earlier report predicted more than 6,000 independent retailers would close by 2024 because of bigger companies like Bunnings.
GDC Advisory’s forecast said that Bunnings, as well as Woolworths and Miter 10, intensified competition and warned that smaller companies would not be able to keep up.
The Byron Bay store opened in 1991 and has been privately owned by James Mitchell and Lisa Mitchell since 2001.
Store manager Richard Gibson wrote, “The price of progress, I really enjoyed being part of the crew. To our customers who have been Byronites all their lives, to the latest additions and to those just passing through. What a great audience. You will be missed. Thanks everyone.’
Privately owned by James Mitchell and Lisa Mitchell since 2001, Miter 10 first opened its doors in 1991
Andrew Terry, professor of corporate regulation at the University of Sydney Business School, previously told Daily Mail Australia: “If Bunnings comes to town, it will be bad news for local businesses.”
Daily Mail Australia has reached out to Miter 10 for comment.
Bunnings general manager Mike Schneider said his company routinely looked for opportunities to expand the number of stores, either through new construction or corporate acquisitions.
“We know from experience that there is plenty of room for larger retailers, smaller retailers and specialty providers in the regions and categories we operate in, and we believe that choice and competition are great for consumers,” he said.
‘There have also been instances over the years where local independent hardware store operators have approached us regarding a possible sale of their shop. We are pleased to have been able to provide these independent entrepreneurs with a viable succession option from time to time.
“By mutually acquiring these operators, we provide continued employment, often at higher wages, for their team, as well as the essential services that hardware and home improvement retailers provide and a steadfast commitment to supporting the communities in which we operate.”