The head of Kalgoorlie-Boulder’s largest business group has welcomed Australia’s consumer watchdog’s decision to block the construction of a new Coles supermarket in the country’s largest outback city.
On Wednesday, the Australian Competition and Consumer Commission (ACCC) used new powers to stop the construction of a Coles supermarket and liquor store near Kalgoorlie-Boulder Airport.
The regulator’s decision was based on the likelihood that it would crowd out smaller competitors.
The historic gold mining town, located about 600 kilometers east of Perth, is served by six supermarkets, including Coles in the Kalgoorlie CBD.
Shoppers enter a Coles supermarket in Kalgoorlie’s central business district. (ABC Goldfields: Jarrod Lucas)
Population is not big enough
Kalgoorlie-Boulder Chamber of Commerce and Industry chief executive Simone de Bean said a population of 30,000 did not justify another supermarket.
“We are pro-development when necessary, but the chamber does not believe we need a second Coles in this location when there is already an existing IGA to serve the area,” Ms de Bean said.
“There are already six supermarkets in Kalgoorlie-Boulder and our population hasn’t really grown that much.
“We’ve also recently had Spudshed open, so if another one comes along we could see the supermarket closing because there simply aren’t enough people to run another supermarket.”
There are already several supermarkets in Kalgoorlie. (ABC News)
Coles, which operates 860 supermarkets across the country, expressed disappointment in the ACCC’s decision, saying it underestimated Kalgoorlie-Boulder’s future growth.
If the second store had been approved, it would have a market share of around 40 per cent in Kalgoorlie-Boulder, according to ACCC deputy chairman Mick Keogh.
“When we looked at this transaction in detail, it was likely to result in the exit of one of the independent companies from the market,” he said.
Coles is considering its options, which could potentially include an appeal to the Australian Competition Tribunal.
Coles opened the Kalgoorlie CBD supermarket in June 2021. (ABC Goldfields: Jarrod Lucas)
Kalgoorlie MP Ali Kent said she understood Coles had 14 days to appeal the ACCC’s decision.
“It’s a surprise because it’s an unprecedented move (by the ACCC),” she said.
“I think we have enough supermarkets to satisfy our population at the moment… no one told me we needed another Coles.”
“The future is a completely different story. We want to increase the population and that’s a really important factor.”
Ali Kent and Prime Minister Roger Cook visit Kalgoorlie railway station in March 2025. (ABC Goldfields: Jarrod Lucas)
FIFO is part of the “full story”
Kalgoorlie-Boulder Mayor Glenn Wilson said the council wanted shoppers to have “real choice” but said the community was supported by local businesses rather than “big chains”.
“Competition is great; however, it is critical for regional communities to ensure there is competition, but we support our own local businesses,” he said.
“Kalgoorlie-Boulder continues to grow and our community deserves retail investment, but not at the expense of those who have already contributed to our community and continue to contribute through existing businesses and employment opportunities.”
Glenn Wilson says the population figures the ACCC relied on during its assessment are not accurate. (ABC Goldfields: Jarrod Lucas)
Mr Wilson questioned the accuracy of the population figures and whether they might have skewed the ACCC’s views.
Kalgoorlie-Boulder had a population of 31,268 as of June 30 last year, according to the Australian Bureau of Statistics.
Glenn Wilson says Kalgoorlie’s population is growing with a temporary workforce. (ABC Goldfields: Jarrod Lucas)
“This does not reflect the full history of Kalgoorlie-Boulder,” Mr Wilson said.
“This does not take into account the temporary workforce that we support and that continues to grow.”
The ACCC said it took into account the “significant” amount of FIFO but concluded it “does not change the relevant measurement of the product in the market”.
Hiccups for the developer
The ACCC’s decision could also have unintended consequences for a proposed $140 million housing development in Kalgoorlie-Boulder known as the Amara Estate.
In February 2024, Perth-based developer M/Group received approval from the state government’s Joint Development Assessment Commission to build a so-called lifestyle village of 397 new modular homes.
The same developer who owns the land for the proposed Coles supermarket is also behind plans for new housing. (ABC Goldfields: Jarrod Lucas)
M/Group did not respond to requests for comment, but its website says the company has pre-sold 40 homes and has contracts for 36 rental homes under the government’s Regional Officers’ Housing (GROH) scheme.
In December 2024, the developer acquired additional land near Kalgoorlie-Boulder, along the Great Eastern Highway.
Coles was to build its supermarket on this land under a lease agreement with a subsidiary of M/Group.
However, even if the project received ACCC approval, it still faced potential planning obstacles.
The proposed site for a Coles supermarket in Somerville is currently covered in bush. (ABC Goldfields: Jarrod Lucas)
The land is home to a registered Aboriginal heritage site known as Gubrun Camp, where local Aboriginal people gathered until the 1960s because they were not allowed into the town of Kalgoorlie after sunset.
Aboriginal elder Brian Champion has been one of the most vocal opponents of previous proposals for the site and told the ABC he had not been contacted by any developers.