Bunnings and 'big-box' stores to face grilling by politicians

Hardware giant Bunnings and other 'big-box' retailers are the focus of a new Senate inquiry examining their treatment of suppliers and customers.

In April, major supermarkets were the subject of an often heated inquiry by the Upper House, and now senators have established a new probe into large stores that sell merchandise at discount prices, known as big-box companies.

Politicians say an inquiry is needed because the household items sold by firms such as Bunnings are not included in the food and grocery sector's code of conduct.

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Nationals Senator Ross Cadell says he's worried about major retailers setting tough requirements for suppliers.

He wants the grocery and greenlife, or nursery, sector covered by the code.

"This inquiry will investigate and recommend the powers needed to clean this industry up, improve competition, and create a fairer, more transparent marketplace for our primary producers and suppliers," he said,

"We know that in local communities around Australia, Bunnings has a market share of more than 70 per cent of greenlife and this market dominance squeezes customers and suppliers.

"With no requirement to be bound by the code, customers are exposed to the risks of rising market power without competition."

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In his government-implemented review of the food and grocery sector's code of conduct earlier this year, former Labor politician Craig Emerson decided Bunnings and other big-box retailers should not be included in his recommendations.

A spokesperson for Bunnings said today the company was looking forward to working with the Senate inquiry, which is due to report back next year.

"Bunnings welcomes the opportunity to work constructively with the inquiry, including to provide insight into our focus on delivering value to customers through lowest prices," a spokesperson told 9News.com.au.

"We have deep connections with communities through our many local partnerships and initiatives, and our employment of more than 50,000 people across Australia."

In its submission to the Emerson inquiry earlier this year, Bunning said its share of the greenlife sector was less than 25 per cent.

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