Competition watchdog to investigate concerns over Woolworths’ B2B plans
Australia’s competition watchdog, the ACCC, said it will investigate concerns raised about Woolworths’ plans to expand its B2B arm.
Woolworths is set to launch a tailored online shopping site for early learning centres, education, disability and care services, but some suppliers have voiced concerns about the retailer operating under the same terms for the B2B site as in its supermarket business.
The ACCC said it will look at whether Woolworths’ plans will harm competition in the industry.
“The ACCC is looking into concerns raised about Woolworths’ expansion into the B2B sector,” an ACCC spokesperson told Inside FMCG on Friday.
“We will examine whether these plans are likely to have an adverse impact on competition, rather than simply an adverse impact on individual competitors.”
A spokesperson for Woolworths told Inside FMCG on Friday that the retailer will “gladly assist the ACCC with any questions they may have”.
The new online shopping site, which was first reported by the Australian Financial Review, is set to launch this month, offering an improved experience for business customers by giving them access to account management, centralised invoicing and consistent year-round prices.
“Many of these businesses already shop for key groceries like snacks, drinks, toilet paper and cleaning products in Woolworths stores or our consumer website. This doesn’t work as well as it should for them or us,” the spokesperson said.
“We believe they would benefit from having a dedicated website, consolidated invoicing and easy-to-use expense reporting. That’s why we’re developing a convenient extension of our existing online grocery business for these organisations.”
Woolworths said the aim is to “make life easier” for these organisations.
Dr Geoffrey Annison, acting CEO of the Australian Food and Grocery Council (AFGC), told Inside FMCG in early July that a number of suppliers had come to the association with concerns over the B2B terms.
“When the supermarkets deal with the suppliers for the retail trade, [the] trading terms are based on understandings of promotion […] both in-store and outside store,” he said.
“They’re taking those prices over to a different model. And the question is whether that’s appropriate or not.”