When a new shopping centre is being negotiated the owners are keen to attract a large supermarket as the head tenant. This underpins the host of small shops that surround it and is the star attraction to draw the crowds.
In the past, the two giants of the supermarket species have used their clout to demand protection. In recognition of their agreement to sign a lease the centre owners will not allow any other supermarket to establish a presence in the complex.
This limits the choice of shoppers - and more importantly - limits the opportunity of those who regularly shop there to compare prices.
Agreement has now been reached between the Australian Competition and Consumers Association ( ACCC ) and Woolworths and Coles to abandon this restriction. As of now, there will be no reason why smaller supermarket chains Aldi, Franklins and the host of independents can not book space and set up trading in major centres.
The reason that this has happened is that the practice contravenes the Trade Practices act.
There is just one jarring item in the small print of the announcement that should worry those who seek a level playing field.
The new arrangement will apply to eighty percent of existing exclusion agreements - but the other twenty percent will be given a further five year life span.
If something breaches the law - and we are told this does not comply with the Trade Practices Act - how can a new agreement countenance that same law being willfully broken for a nominated period of time.
Do we have a " Clayton's Law " - the law we have when we are not having a law ?
It would be interesting to hear the legal eagles explain that one away !
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