The Australian competition regulator is looking into Woolworths’ plans to build a AU$1 billion (US$697.07 million) wholesale business supplying the education, childcare, healthcare, disability, and government sectors, reported The Australian Financial Review.
Australian Competition and Consumer Commission (ACCC) chairman Rod Sims confirmed the regulator had received letters from food service distributors and food and grocery suppliers worried about the effect of Woolworths’ expansion in the sector through its fast-growing digital business.
Mr Sims said the ACCC would look at whether Woolworths’ B2B strategy had an adverse impact on competition, rather than an adverse impact on competitors.
Woolworths wants to lift its wholesale sales three- to four-fold to AU$1 billion in three years by using its burgeoning online platform and massive distribution network to supply small, medium, and large customers such as childcare centers, schools, and disability and care services with food and groceries.
Full Content: Financial Review
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