The ACCC has exercised new powers to block the opening of a Coles supermarket and Liquorland store in Kalgoorlie, on the grounds it could knock out smaller competitors in the surrounding region.
In November 2025, Coles notified the ACCC of a proposal to acquire the lease for a vacant site at 95-106 Great Eastern Highway, Somerville, a suburb of Kalgoorlie-Boulder. Coles proposed to develop the site to operate a full-line supermarket and liquor store.Coles has proposed the acquisition of a leasehold interest over a new supermarket and liquor site in Kalgoorlie, Western Australia.
Australia’s biggest outback city is currently served by four large, full-line supermarkets – Coles, Woolworths and two independent stores, plus two smaller independent supermarkets.
After an initial Phase 1 review, the ACCC determined in January 2026 that the acquisition required an in-depth Phase 2 assessment.
Having concluded its Phase 2 assessment, the ACCC has decided Coles’ proposed acquisition would likely have the effect of substantially lessening competition in Kalgoorlie.
The ACCC considers it is likely the acquisition would lead to the exit of an effective independent full-line competitor, and its assets, from the city and result in a reduction in the competitive constraints on the major supermarket chains.
“We conducted extensive inquiries and analysis of material provided by Coles and third parties, and assessed the likely competitive effects of the acquisition on competition in the retail supply of groceries in Kalgoorlie,” ACCC Deputy Chair Mick Keogh said.
“Independent supermarkets are an important competitive constraint on the major supermarket chains. They provide consumers with meaningful choice, competition on service, quality and range, and competition on price for some products.”
“We found that while a new Coles supermarket will offer benefits to some consumers, there is a real prospect that the acquisition would lead to the exit of an effective independent competitor, and its assets leaving the market. New entry would not be timely enough and sufficient to offset the loss of competition likely to result from the acquisition.”
“Based on our assessment of all of the material before us, we are satisfied that there is a real commercial likelihood that Coles’ proposed acquisition would substantially lessen competition in Kalgoorlie in the longer-term, to the overall detriment of consumers,” Keogh said.
Owner of Kalgoorlie’s Lionel St IGA Nitendra Raj told ABC News that he 100% backed the ACCC’s ruling. Raj said his franchised supermarket was already struggling to get staff and he was worried Coles would use up more workers.
“Our buying will go down. We have more issues with freight,” he said.
The ACCC was given new oversight powers this year. Supermarkets must notify the ACCC when they intend to take over another supermarket, take out a lease in an empty building or develop a greenfields site.
Coles said it is considering its next steps after the decision, which could involve lodging an appeal with the Australian Competition Tribunal.
“The ACCC has underestimated Kalgoorlie’s future growth and demand,” Coles said. “As we demonstrated to the ACCC through extensive evidence, Coles’ business case for this store does not rely on any existing operator leaving the market. Rather, it assumes continued growth among competitors over time.”