AUSTRALIA | Coles' proposal to take on the lease of a supermarket and liquor site in Kalgoorlie has been opposed by the ACCC.
The ACCC has decided that Coles Supermarkets Australia Pty Ltd must not put into effect a proposed acquisition of a leasehold interest over a new supermarket and liquor site in Kalgoorlie-Boulder, Western Australia.
In November 2025, Coles notified the ACCC of a proposal to acquire the lease for a vacant site at 95-106 Great Eastern Highway, Somerville, a suburb of Kalgoorlie-Boulder. Coles proposed to develop the site to operate a full-line supermarket and liquor store. After an initial Phase 1 review, the ACCC determined in January 2026 that the acquisition required an in-depth Phase 2 assessment.
Having concluded its Phase 2 assessment, the ACCC is satisfied that Coles’ proposed acquisition would likely have the effect of substantially lessening competition in the retail supply of groceries by supermarkets in Kalgoorlie.
Consumers in Kalgoorlie are served by four large, full-line supermarkets: Coles, Woolworths and two independent stores (plus two smaller independent supermarkets). The ACCC considered it is likely the acquisition would lead to the exit of an effective independent full-line competitor, and its assets, from Kalgoorlie and result in a reduction in the competitive constraints on the major supermarket chains.
“We conducted extensive inquiries and analysis of material provided by Coles and third parties, and assessed the likely competitive effects of the acquisition on competition in the retail supply of groceries in Kalgoorlie,” ACCC Deputy Chair Mick Keogh said.
“Independent supermarkets are an important competitive constraint on the major supermarket chains. They provide consumers with meaningful choice, competition on service, quality and range, and competition on price for some products.”
“We found that while a new Coles supermarket will offer benefits to some consumers, there is a real prospect that the acquisition would lead to the exit of an effective independent competitor, and its assets leaving the market. New entry would not be timely enough and sufficient to offset the loss of competition likely to result from the acquisition,” said Keogh.
“Based on our assessment of all of the material before us, we are satisfied that there is a real commercial likelihood that Coles’ proposed acquisition would substantially lessen competition in Kalgoorlie in the longer-term, to the overall detriment of consumers.”
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