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Posted: 2024-04-11 04:47:41

The Senate inquiry hearings into supermarket prices are continuing today, and Aldi boss Anna McGrath has faced a number of questions about proposed divestiture powers, in which the competition watchdog could force supermarkets to sell some stores if they get too big.

McGrath’s response is fairly definitive: “We’re not supportive of divestiture because of the risk of unintended consequences,” she said.

ALDI Australia CEO Anna McGrath during the inquiry.

ALDI Australia CEO Anna McGrath during the inquiry.Credit: Alex Ellinghausen

She pointed to Craig Emerson’s review into the food and grocery code of conduct, in which he said he doesn’t support the measure that “could easily [result in] greater market concentration”, according to the interim report.

McGrath said she was wary of “unintended consequences” that could come from divestiture powers.

“What we wouldn’t want to see is consumers having less choice or there being less jobs in retail or suppliers.”

And any Tasmanians hoping for an Aldi store to open up in their local area shouldn’t hold their breath.

Inquiry chair and Greens senator Nick McKim used some of his time with Aldi boss Anna McGrath to ask why there are no Aldi stores in Tasmania.

“There’s still catchments within our major cities that we still haven’t been able to penetrate,” said McGrath, explaining supply chains are more complex in lower-density areas.

Tasmanian Senator Tammy Tyrrell demonstrated her passion for an Aldi off the mainland with a number of questions, concluding with this statement: “I will say that you are a tourist destination for every Tasmanian that comes to the mainland.”

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