ACCC moving against supermarket ‘shopper docket discounts’?

South Australia’s peak retail automotive business group – the Motor Trade Association of South Australia – welcomes comments from the Australian Competition and Consumer Commission (ACCC) chairman, , regarding the use of ‘shopper docket discounts’ by supermarket chains to subsidise their fuel sales.

MTA CEO John Chapman says that the industry is happy that their ongoing requests for real action against supermarket chains seems to have finally been heard.

“The MTA has made repeated requests to the ACCC to investigate the market dominance of the supermarket chains in the retail fuel market, over the last few years, without any results,” says Chapman.

“It is great to see the chairman of the ACCC, Rod Sims, finally recognise the plight of small independent retailers – and the reality that the current dominance of the supermarket chains is forcing smaller independents out of business.

“The ACCC’s recognition that supermarket chains are using profits from their supermarket business to lower the price of fuel is a great step and we agree with Sims that if they want to discount their products, they should do it in their supermarkets and not at the petrol pump,” he says.

The introduction of the supermarket chains in the retail fuel market may have been seen as a win for consumers initially, but the long-term consequences are starting to be noticed in the industry.

“We have seen the independent sector shrink considerably over the last decade which is ultimately is bad for consumers,” says Chapman.

“Without a strong independent retail fuel market, consumers will ultimately face higher prices as there will be less competitive pressure on the supermarket chains to have lower, more competitive prices.

“We want a strong, vibrant and competitive retail fuel market in South Australia.

“To make this a reality, independents need to be able to compete on a level playing field and the removal of ‘shopper docket discounts’ from the marketplace would help provide this.

“We watch in anticipation that Mr Sims follows up his words with genuine action and that we cultivate the right competitive environment for the retail fuel market so everyone benefits,” Chapman says.