Woolworths makes complaint against Bunnings as hardware war heats up

Supermarket giant Woolworths has confirmed that is has lodged a complaint with the Australian Competition and Consumer Commission over the behaviour of the Bunnings hardware chain, which is owned by West Australian conglomerate Wesfarmers.

Woolworths is in the process of establishing its own hardware chain in a joint venture with US-based hardware giant Lowe’s.

This will extend the battle ground between Woolworths and Wesfarmers, which also owns the Coles, Target and Kmart chains.

But Woolworths has alleged Bunnings has been playing dirty.

Woolworths chief Michael Luscombe confirmed yesterday that the company had lodged a complaint with the ACCC over Bunnings’ conduct.

“We have put together some information for the ACCC relating to some concerns around supplier issues that have been brought to our attention by [the suppliers] and some property development processes in a couple of states,” he told the Australian Financial Review.

In one of the most talked-about incidents, Bunnings is reported to have paid well over market rates to secure a site opposite its store in Hervey Bay, Queensland that Woolworths is believed to have nominated as a potential site for one of its hardware stores.

Bunnings is also reported to have been active in opposing development approvals sought by Woolworths as part of its planned store roll-out.

Luscombe said it was now up to the ACCC to decide whether to act on the complaint.

A spokesperson for the ACCC said it was the organisation’s policy not to confirm or deny whether inquiries are underway.

A spokesperson for Bunnings was unavailable prior to publication. However, the company said earlier this week that it was yet to receive any correspondence from the ACCC.

Woolworths eventually hopes to open 150 large-format hardware and home improvement stores around Australia, with 11 set to open in Victoria over the next six to 12 months.