MTAA Concerned at New Coles Myer 12 cent Shopper Dockets

The Motor Trades Association of Australia (MTAA) has today expressed concern at media reports of a new 12 cent per litre shopper docket discount for consumers who buy a dozen bottles of wine at Coles Myer’s Liquorland outlets.

MTAA’s Executive Director, Michael Delaney, said that this new development in shopper docket schemes will only serve to erode competition in the retail petrol sector while encouraging increased alcohol consumption.

“The pre-existing shopper docket discount schemes of four cents per litre have already bitten into the competition in the retail petrol sector; this new development will only compound the situation and, in the longer term, will result in a less competitive market for both petrol and wine” Mr Delaney said

“In addition, this new development could encourage greater alcohol consumption as we head into the festive season, a time when there are already problems relating to alcohol consumption. MTAA believes that this scheme is sending the wrong message and that it is socially irresponsible to link alcohol consumption with fuel.

“While the 12 cent shopper docket discount at Liquorland is only for a limited period, and noting that Safeway has ruled out a plan to match the offer, MTAA is in no doubt that this scheme will re-emerge either periodically or permanently.

“It is important for my members and for the community as a whole that there is strong competition in the retail fuel sector in order to provide the lowest priced fuel for consumers. That can only be secured by the presence of branded and independent competitors to the grocer petrol stations. They cannot compete with these offerings and that is no doubt part of the purpose of them.”

In competition neutrality terms the non-grocer service stations should now presumably be permitted to sell wine and other alcohol, because Coles can sell both but our members can’t.

This latest development shows that the shopper docket discount schemes are rapidly changing in their nature and impact on the market place; MTAA believes that there is a need for a full-scale, independent review of shopper docket schemes to ascertain their impact on competition in the market and the impact on retail fuel prices over the longer term

The ACCC says that competition is about the interests of consumers and we agree. There cannot however be competition without competitors and as this offer demonstrates, the transitory gain to consumers arising from shopper dockets has the effect of destroying these competitors. When that is done the absence of competition can’t be undone. At that point the discount will be off a seriously escalated price determined without challenge by the two grocers. It will have been a mirage.

For further information please contact Michael Delaney, Executive Director MTAA, on 02 6273 4333