Code of conduct should cover offshore retailers: Goyder

Wesfarmers managing director Richard Goyder has called on suppliers to force offshore retailing giants to sign on to the recently announced code of conduct reached by Coles and Woolworths, according to The Australian Financial Review.

The code of conduct, which would increase oversight by the Australian Competition and Consumer Commission (ACCC), is designed in part to allay fears of dominance by Coles and Woolworths.

However, Mr Goyder said the focus on those two companies, including Wesfarmers-owned Coles, overlooks the role overseas retailing giants such as Costco and Aldi play in the Australian market.

“I think suppliers should demand the same standards from all the retailers,” Mr Goyder told the AFR.

“I don't subscribe to the view that there is a duopoly of supermarkets in Australia.

“It's for others to judge whether some of the major suppliers and some of the other retailers should be part of the code and should have to conduct themselves in the same way that we will be expected to conduct ourselves.”

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Agreed Richard. The problem with this country and its management (and advisors, consultants, professional advisors, etc.) is that it thinks it is still an island; it can do what it wants to. That it can ignore facts. The reason that the door is being opened and overseas retailers are coming here is because this country, and particulalry legislators and regulators refust to: 1. Listen; 2. Act; 3. Legislate; and 4. Regulate. Say 5+ years ago I was vehimantly opposed to Coles/Woolworths. Then I gave it more thought; all you guys are doing is to operate within the law; to maximise revenue and margin. Hey there is nothing wrong with that. Metcash has been a distant third in terms of size and capacity to be competitive; hence there is no genuine competition. Coles/Woolworths are price leaders; Aldi; Ikea; Costco, etc. will be price followers. So what Coles/Woolworths have been doing to smaller competitors, the door is opening to overseas majors. And they will do the same to you. Why? Gross incompetence by legislators/regulators, etc.underpinned by wages, leasing/rent costs (article in todays Courier Mail i.e. Brisbane ref to article on my LinkedIn site "Brisbane rents misrepresented"). Instead of the pie being divided and split into and between Australian owned and operated capital, by failing to legislate/regulate. Well the pie is being subdivided by overseas capital. Now. I wish this nsadycnaryaohasn country would bloody well wake up!