Bunnings, IKEA and PetStock face scrutiny over their market power | The Business | ABC News

Bunnings is facing more backlash, with a Senate Inquiry set to interrogate its market power. The hardware giant is being accused by rival Metcash, the owner of Mitre 10, of locking out competition by striking exclusive arrangements with suppliers. It said "these brands were once available to consumers via the independent market and are now only available in the hardware channel via our major competitor". The rise of exclusive brands in the tools space has also not gone unnoticed by independent hardware store owner and retail legend, Frank Penhalluriack. He says they can lock customers into using tools only sold by one retailer, and make it difficult for his store in Melbourne's south to offer parts to customers, who own these products. His hardware store is struggling with lower margins as it tries to keep up with the majors. The so-called 'big box retailer price setting' inquiry was established after another inquiry heard Bunnings had allegedly treated its plant suppliers like "slaves". The Wesfarmers-owned hardware giant is in the new inquiry's sights, and its terms of reference could rope in other major names like Mitre 10, Dan Murphy's, Chemist Warehouse, Swedish chain Ikea, and Petstock and Petbarn. Bunnings is also pushing further into the booming pets category, offering products like chew toys and bagged treats, as is pharmacy giant Chemist Warehouse. The federal government is also proposing new laws that will require major merger and acquisition proposals to seek approval from the competition regulator. The ACCC has already raised concerns about consolidation, previously lamenting that Petstock had made "a large number of acquisitions" that had eroded competition from small stores. It ended up ordering Petstock to divest 41 shops before Woolworths could take its controlling stake.
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