Many years ago the government became alarmed at the expansion of chemist chain Soul Pattinson. There seemed a chance that this expansion could lead to a monopoly, driving competitors to the wall because of it's bulk buying muscle and price cutting approach.
Legislation was enacted limiting the number of stores that it could own
Two huge companies now control eighty percent of all groceries sold in this country - and Coles and Woolworths are set to diversify into other sales areas other than food.
They already have a commanding presence selling petrol to motorists, and there has been pressure to allow them to establish full chemist services within their stores.
They are steadily expanding in the liquor market and have adopted the tactic of buying out competitors, and running those outlets under their former names to give the impression that competition exists.
The question that should be asked is whether the Australian public would be best served by allowing two giant behemoths to establish competing monopolies in so many aspects of retail spending ?
There is the danger in such a situation that an " understanding " could be reached which would see prices increase to such a level that it becomes highly profitable for these chains - and seriously disadvantages the wallets of shoppers.
Many would agree that it was a mistake to allow grocery chains to elbow their way into the petrol market and we are now paying the price of less competition.
Now would be a good time to have a long, hard look at what is happening - decide on a national policy - and put in place whatever safeguards and limits are deemed necessary to prevent the public being exploited.
Doing it tomorrow might be too late !
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