Coles has confirmed it will appeal a decision blocking the company from opening a new supermarket in Western Australia’s mining city of Kalgoorlie.
Australia’s competition watchdog, the ACCC, ruled that the proposed store could reduce competition by forcing an independent supermarket out of the market.
The decision marks the first time the ACCC has used its new merger powers to stop a major supermarket expansion.
Coles says the ruling underestimates Kalgoorlie’s population growth and increasing demand driven by the mining industry and FIFO workers.
The retailer argues the new supermarket would create local jobs, improve shopping convenience and offer customers more choice.
The appeal is expected to become a landmark test of Australia’s new competition laws governing supermarket expansion.
