About NARGA
The National Association of Retail Grocers of Australia (NARGA) is a federation of associations representing independent grocery retailers in each Australian State and Territory. They are:
- IGA Retail Network
- Master Grocers of Australia
- United Retail Federation
- WA Independent Grocers Association
- State Retailers Association of South Australia
- Tasmanian Independent Retailers
NARGA represents around 4,500 independent retailers which employ more than 225,000 people throughout Australia. NARGA’s membership base is national, covering not only the major cities, but also rural and regional Australia, including many towns where the major supermarket chains are not represented. In these towns the local grocery store is the heart of the community providing vital services and employment opportunities. It is therefore vital that these stores are competitive so as to maintain a vibrant local economy where the money and benefits generated remain in and support the community.
NARGA is committed to ensuring that its members are not victims of anti-competitive conduct and, in doing so, does not seek handouts or protection. Rather, NARGA seeks recognition of and a reduction in the compliance costs faced by small business, and the adoption of trade practices and competition policies that enable small business to compete vigorously in the marketplace.
NARGA is concerned to ensure that independents provide a competitive third force within the retail grocery industry to counter the market power of the two major supermarket chains, which already dominate the national grocery market. In order to be such a force, the independent sector must, when buying comparable quantities, be able to acquire its supplies at comparable prices to those obtained by the two major supermarket chains. In addition, independents must not be strategically targeted by anti-competitive below cost pricing or other predatory tactics that may be used by the major supermarket chains. In short, any anti-competitive conduct within the retail grocery industry must be vigorously investigated and stamped out.
Where independents can be a competitive third force, consumers will benefit from more choice, better prices and services than those they may receive when faced with a duopoly comprising the two major supermarket chains. Indeed, a competitive third force within the retail grocery industry will protect consumers from the dangers of a cozy duopoly, where price competition is only within a limited range as determined by the duopolists; where there is a lack of real choice as a result of the duopolists refraining from competing on price or service; and where there is a lack of genuine innovation.
