The ACCC has stepped in to prevent Coles from acquiring a leasehold for a new supermarket and liquor store in Kalgoorlie, citing risks of reduced competition and the potential exit of an independent rival.
- ACCC finds acquisition likely to lessen competition in Kalgoorlie grocery market
- Coles’ proposed site includes a large-format supermarket and Liquorland store
- Independent supermarkets seen as key competitive constraints on majors
- New Coles store could force exit of effective independent competitor
- ACCC’s Phase 2 review concluded after extensive inquiries and analysis
ACCC Blocks Coles’ Expansion in Kalgoorlie
The Australian Competition and Consumer Commission (ACCC) has formally opposed Coles Supermarkets’ plan to acquire a leasehold interest for a new supermarket and liquor store in Kalgoorlie-Boulder, Western Australia. The regulator concluded that the acquisition would likely substantially lessen competition in the local grocery market by threatening the viability of an independent full-line supermarket.
Market Structure and Competition Concerns
Kalgoorlie’s grocery retail landscape currently features four large full-line supermarkets: Coles, Woolworths, and two independent operators, alongside smaller independent stores. The ACCC’s detailed Phase 2 assessment, triggered after an initial review, found that Coles’ entry via the new leasehold at 95-106 Great Eastern Highway would risk the exit of one of these independents, reducing competitive pressure on the major chains.
ACCC Deputy Chair Mick Keogh emphasised the importance of independent supermarkets as meaningful competitors that drive service quality, product range, and pricing. He noted that while the new Coles store might benefit some consumers, the likely loss of an effective independent would diminish choice and competition overall.
Details of the Proposed Acquisition
Coles had notified the ACCC in November 2025 of its intention to develop a large-format supermarket with a 2,800 square metre selling floor and an attached Liquorland outlet on a currently vacant site in Somerville, a suburb of Kalgoorlie-Boulder. The property is being developed by M Holdings 4 Pty Ltd, owned by M/Group, as part of a neighbourhood centre project.
Coles, Australia’s second-largest supermarket chain operating 860 stores nationally, currently runs one store in Kalgoorlie. The new site would represent an expansion of its footprint in the region.
Regulatory Framework and Implications
The acquisition was voluntarily notified ahead of the mandatory notification regime effective from January 2026, under which large supermarket acquisitions must be reported to the ACCC. The regulator’s Phase 2 review, which must be completed within 90 business days, involved extensive inquiries and analysis of materials from Coles and third parties.
The ACCC’s decision not to approve the acquisition rests on the statutory requirement that mergers or acquisitions must not substantially lessen competition in a market. The regulator found a “real commercial likelihood” that the acquisition would harm competition in Kalgoorlie in the longer term.
This intervention highlights the ACCC’s vigilance in maintaining competitive supermarket markets outside major metropolitan areas, where independent operators play a critical role in keeping the majors in check.
Bottom Line?
Coles faces a regulatory roadblock that could reshape competitive dynamics in Kalgoorlie’s grocery sector and signal tighter scrutiny on supermarket expansions in regional markets.
Questions in the middle?
- Will Coles appeal the ACCC’s decision or seek alternative entry strategies in Kalgoorlie?
- How will the potential exit of an independent supermarket affect pricing and service in Kalgoorlie?
- Could this decision influence future acquisitions by Coles or Woolworths in other regional centres?