ACCC rules six supermarkets enough to service Kalgoorlie

The head of Kalgoorlie-Boulder's peak business group has welcomed a decision by Australia's consumer watchdog to block the development of a new Coles supermarket in the nation's biggest outback city.

On Wednesday, the Australian Competition and Consumer Commission (ACCC) exercised new powers to stop the build of a Coles supermarket and liquor store near the Kalgoorlie-Boulder Airport.

The regulator's decision was based on the likelihood it would knock out smaller competitors.

The historic gold mining city, about 600 kilometres east of Perth, is serviced by six supermarkets, including a Coles in the Kalgoorlie CBD.

Population not big enough

Kalgoorlie-Boulder Chamber of Commerce and Industry CEO Simone de Been said the 30,000-strong population did not justify another supermarket.

"We are pro development when it is needed but the chamber doesn't think that we need a second Coles in that location when there is already an existing IGA in place to service that area," Ms de Been said.

"There are six supermarkets in Kalgoorlie-Boulder already and our population really hasn't grown that much.

"We've also had Spudshed open up recently, so if another one comes in we will see a supermarket close down, because there just isn't enough people to sustain another supermarket."

Coles, which operates 860 supermarkets nationwide, has expressed disappointment at the ACCC decision, saying it underestimates Kalgoorlie-Boulder's future growth.

It would have emerged with a market share of about 40 per cent in Kalgoorlie-Boulder if the second store was approved, according to ACCC deputy chairman Mick Keogh.

"When we looked in a great deal of detail at this transaction, it would likely have resulted in one of the independents leaving the market," he said.

Coles is considering its options, which could potentially include an appeal to the Australian Competition Tribunal.

Kalgoorlie MLA Ali Kent said she understood Coles had 14 days to appeal the ACCC decision.

"It's a surprise because it's an unprecedented move [by the ACCC]," she said.

"I think we've got enough supermarkets at the moment to satisfy our population ... nobody has said to me yes we need another Coles.

"Into the future, that's a different story. We want to grow the population and that's a really important factor."

FIFO part of 'full story'

Kalgoorlie-Boulder Mayor Glenn Wilson said the council wanted shoppers to have "genuine choice" but said it was local businesses rather than "big chains" which supported the community.

"Competition is healthy; however, what is critical for regional communities is to ensure that competition is there, but we are supporting our own local businesses," he said.

"Kalgoorlie-Boulder continues to grow and our community deserves retail investment, but not to the detriment of those who have already contributed to our community and continue to contribute through existing businesses and employment opportunities."

Mr Wilson cast doubt on the accuracy of population data and whether it could have skewed the ACCC view.

According to the Australian Bureau of Statistics, Kalgoorlie-Boulder was home to 31,268 people as of June 30 last year.

"It doesn't tell the full story of Kalgoorlie-Boulder," Mr Wilson said.

"It doesn't take into account the transient workforce we are supporting and which continues to grow."

The ACCC said it considered the "significant" FIFO population but concluded it "does not alter the relevant product dimension of the market".

Hiccup for property developer

The ACCC decision could also have unforeseen ramifications for a proposed $140 million housing development in Kalgoorlie-Boulder, known as Amara Estate.

Perth-based property developer M/Group was granted approval by the state government's Joint Development Assessment Panel in February 2024 to build the so-called lifestyle village, comprising 397 new modular dwellings.

M/Group did not respond to requests for comment buts its website says it had pre-sold 40 houses and contracted 36 to be leased to the Government Regional Officer Housing (GROH) program.

In December 2024, the developer acquired more land nearby from the City of Kalgoorlie-Boulder, along the Great Eastern Highway.

That land is where Coles was set to build its supermarket, via a lease agreement with a subsidiary of M/Group.

However, even if it got the tick of approval from the ACCC, it still faced potential planning hurdles.

The land includes a registered Aboriginal heritage site, known as Gubrun Camp, where local Indigenous people gathered until the 1960s because they were not allowed within the Kalgoorlie townsite after sunset.

Aboriginal elder Brian Champion has been one of the most vocal opponents of previous proposals for the site, and told the ABC he had not been contacted by any developers.