Woolworths has strongly denied land-banking to prevent competitors from setting up shop in some suburbs and towns.
The $36 billion food giant’s land acquisitions were placed under the microscope today at the inquiry into supermarket prices by the Australian Competition and Consumer Commission (ACCC).
Woolworths property boss Ralph Kemmler said its portfolio included shopping centres, including some where the company did not operate a supermarket.
None of the centres it owned had both a Woolworths and a Coles.
An internal document, dated March 2023, noted Woolworths owned sites “held for strategic reasons” that were not earmarked for development.
Barrister Naomi Sharp, SC, the counsel assisting the ACCC, pressed Kemmler on whether holding land for strategic reasons counted as land banking, to which Kemmler said, “I don’t believe so”.
Sharp asked: “It [the document] says that the properties are held on the balance sheet, and they’re not planned for future development, and that they’re held for strategic reasons … Do you want to give us an example of what that means?”
Kemmler replied: “They’re a combination of company homes, surplus land from developments that we’ve completed that are to be sold or land held pending other developments, and also would include some land that has long term underlying leases that have been developed for other purposes.”
Sharp was not convinced, and asked again what “sites held for strategic reasons” meant.
“It means that they didn’t fit into the previous buckets,” Kemmler replied.
“Well, that sounds like a strange explanation of the word ‘strategic’,” Sharp responded.
with AAP