Woolworths staff swarm IGA stores in coordinated visits, independents allege bullying
Woolworths has been accused of intimidating smaller rivals after groups of uniformed staff visited two IGA supermarkets in Western Australia on the same day, with independent retailers claiming the coordinated exercise crossed the line from routine market research into bullying.
Security footage provided to The West Australian showed between 10 and 15 Woolworths employees entering Tucker Fresh IGA Broadway on September 1, with the business claiming the group walked through the aisles and took photographs during peak trading hours.
What happened at the two IGA stores?
Tucker Fresh IGA executive partner Veer Shah said the size of the group was intimidating for staff and disruptive for customers. The employees did not introduce themselves or show consideration for people working and shopping in the store, he said.
Separate footage from Taylor Road IGA in Nedlands showed a similar incident on the same day. Some of the visitors, wearing Woolworths-branded polos and fleeces, could be seen with their arms behind their backs while inspecting food and vegetable stands. One staff member was photographed taking pictures.
Why are the independent retailers concerned?
Taylor Road IGA owners James and Rita Kelly have reported the incident to the Australian Competition and Consumer Commission (ACCC), alleging anti-competitive behaviour. Mr Kelly described the regulator as weak and said he did not expect immediate action.
These guys were obviously just on a mission to see what we were doing. As their leader said, they are there to see what we're doing so they can do it better, Mr Kelly said.
The incident comes as Woolworths prepares to open a new 4000 square metre store just one kilometre from Mr Kelly's shop, which he has owned for about 25 years. He described the approach as acquisition by stealth.
What has the ACCC and Woolworths said?
An ACCC spokeswoman said the regulator does not generally comment on reports received or potential investigations, per its media code of conduct. Mr Kelly said he was told to allow 15 working days for a response.
A Woolworths spokeswoman said the company was reviewing the incident at Mr Kelly's store.
Market research is common in retail but we always expect our team to be respectful, she said.
What is the broader context for independent supermarkets?
Master Grocers Australia, the peak body representing independent supermarkets and liquor stores, has called on Woolworths to explain what its employees were trying to achieve. Chief executive Martin Stirling expressed concern that the footage suggested unprofessional and potentially intimidating behaviour.
Independents have grown increasingly concerned about creeping acquisitions, where larger players purchase shopping centres and decline to renew leases of independent supermarkets, allowing their own outlets to move in. Evidence to a 2024 Senate inquiry from Metcash and Ritchies noted this trend involving both Coles and Woolworths.
Mr Kelly said competition was good, but not when it targeted independents directly. He also raised concerns about supply chain pressure, claiming Woolworths pushed down prices paid to farmers.
What new laws affect Coles and Woolworths?
Coles and Woolworths are now subject to new anti-price gouging laws introduced by the Federal Government in December. The laws prohibit large retailers from charging prices deemed excessive compared with the cost of supply plus a reasonable margin.
The new legislation follows a Federal Court finding earlier this year that Coles misled shoppers with illusory discounts on grocery staples. Woolworths is facing a similar case brought by the ACCC, with judgment reserved.