AUSTRALIA’S biggest supermarket chain has made a huge mistake when it opened its doors to a chain of rival supermarkets, the company has admitted.
The Macys brand has been accused of creating an opportunity to compete with supermarket chains such as Woolworths and Coles and for its competitors to undercut its products and pricing.
Macys, which owns more than 80 per cent of the Australian supermarket industry, has faced growing criticism after it said it would no longer be selling its own products in the retail industry.
Its decision comes after the retail sector in Australia was rocked by the Woolworth’s and Colours scandals in which Australian shoppers were left to pay more for inferior food than their British counterparts.
It has also been accused by consumer groups of offering inferior food, with the Australian Food Safety Authority (AFSA) saying it was “extremely difficult” to compare prices.
However, a report released this week by the ACCC and the Australian Competition and Consumer Commission said the ACCCs complaints about the Macys supermarket chain were “not substantiated”.
The ACCC said in a statement that it was concerned that the Macies brand had been marketed to consumers as a “premium brand” that had a higher price tag and higher shelf space.
“This is not the case.
We have seen evidence that Macys has marketed its products as a premium brand,” the ACCCC said.”
The ACCCC also noted that while Macys is owned by the Macons, the Macos do not have the same control over its business. “
Macys has not done anything wrong.”
The ACCCC also noted that while Macys is owned by the Macons, the Macos do not have the same control over its business.
“The ACCCs has no power to stop Macys from selling its products to competitors, nor does it have power to block Macys selling to competitors,” the report said.
It also noted the ACC was “not aware of any complaints” about the supermarket chain about its supermarket chain business practices.
But Macys CEO Paul Haggarty said the supermarket company had not taken any action against the ACCs report and he was confident the ACC would not find it credible.
“It’s a serious matter and I think we’re confident that the ACC will not find any basis for any of our complaints,” Mr Haggart told reporters on Thursday.
“I think that’s the case, but I can’t go into detail because it’s confidential.”
We’ve been in this industry for a long time and we’ve been through the scandals, we’ve had all of the investigations, and we’re very confident that there’s nothing that we can do to get it back into the marketplace.
“Mr Haggard said he did not know the ACC had taken the ACCS report seriously, and did not think the ACC needed to.”
No, we’re not surprised by that.
The ACCS is a very good regulator.
They’re very thorough and they’ve got a very clear role to play,” he said.
The ACC said it had “received and reviewed numerous complaints and received assurances from consumers and suppliers” about Macys’ compliance with food safety regulations.”
The review of the ACC’s investigation was undertaken independently by the Australian Commission for Industry and Competitiveness (ACIC), which concluded that the relevant complaints and assurances from suppliers were reliable and sufficient,” ACCC chairperson Michael Thurlow said in the statement.
The watchdog said the review had not found any breaches of food safety legislation, and it would not be seeking to recover any financial losses.”
Macys’ actions have been well-founded and it’s a matter for the ACC to assess the impact on its business,” Mr Thurlows statement said.
But the ACC said there was “evidence that there is a need to look at the potential for similar challenges to be raised about other brands” in Australia.”
Consumers are likely to be disappointed with the ACC response to the ACCNS’ complaint and will have more concerns about the ACC and ACCS actions in the future,” it said.
The ACC will now review the ACCCA’s complaints and take further action against Macys in a “truly independent” way, it said in its statement.
It is unclear what action will be taken by the Commission.