Wednesday, 2 January 2008

Competition - at last

Shoppers in the delightful Monaro shire town of Cooma will be delighted when they finally have a choice of grocery shopping.

Years ago Woolworths established a major grocery business - and quickly competitors closed their doors until there was only one remaining. It was surprising - considering the anti-monopoly stance of the government - that Woolworths were permitted to acquire this business - and gain an absolute monopoly of major grocery sales in this town of about nine thousand people.

In March arch competitor Coles will open a huge shopping complex in Sharp street, comprising a full Coles supermarket and an arcade of speciality shops. For the first time in many years - shoppers will have a choice of where they buy their groceries.

This should be a warning to regulatory authorities that private grocery stores can not compete with the big two - Woolworths and Coles - with the possible addition of Franklins.

Whenever a country town is reduced to two supermarkets it would be wise to refuse to allow monopoly status. The last remaining grocery store should never be permitted to be sold to a major existing competitor - and that status should be reserved for a competitor of equal status.

In the case of Cooma - shoppers are again to have the right to pick and choose !

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