Woolworths and Greenlife Industry Australia have formed an unlikely alliance against the hardware giant, whose managing director says the industry code of conduct is for grocery retailers.
Bunnings has rejected a push for it to be subjected to a mandatory food and grocery code of conduct, with managing director Michael Schneider saying the hardware giant is happy to allay any concerns of its horticultural suppliers independently.
Woolworths and the industry association for plant growers have formed an unlikely alliance in calling for Bunnings to be included in the food and grocery code of conduct. The supermarket argues that the hardware giant is now a competitor in certain categories, while the association accuses Bunnings of abusing its market power in the plant retail sector.
“The Australian retail grocery market is now undeniably broader than what has traditionally been defined as supermarkets,” the $39.5 billion supermarket giant said in its submission to Emerson’s review.Schneider said that the code should be assessed through an “industry lens” rather than by product, pointing out that supermarkets might, from time to time, sell power tools.
“It seems ludicrous that Bunnings would sit outside the code and not be subject to any of the rules,” said Cave, who argued that the big box retailer had more in common with major supermarkets than local garden centres.
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