Coles barred from acquiring Kalgoorlie supermarket site

• The Australian Competition and Consumer Commission has blocked Coles from acquiring a leasehold interest for a new supermarket and liquor site in Kalgoorlie-Boulder.
• The regulatory block prevents the expansion of the supermarket chain's local footprint beyond its single existing store in the region.
• The regulator determined the transaction would likely cause the exit of an independent competitor and substantially lessen retail grocery competition.

The Australian Competition and Consumer Commission blocked Coles (ASX:COL) from acquiring a leasehold interest to develop a 2,800-square-metre supermarket and liquor store in Kalgoorlie, Western Australia.

The regulator noted that the regional market is currently served by four full-line supermarkets, including Coles, Woolworths, and two independent operators.

“We found that while a new Coles supermarket will offer benefits to some consumers, there is a real prospect that the acquisition would lead to the exit of an effective independent competitor and its assets leaving the market,” said ACCC Deputy Chair Mick Keogh.

The proposed development at Great Eastern Highway was voluntarily notified by the company in November 2025 before being pushed into an in-depth Phase 2 review in January.

The decision marks a regulatory enforcement action under the merger control regime that became mandatory for major Australian corporations on Jan 1. Following the announcement, the Coles share price was unchanged at $17.50.

The company operates 860 supermarket stores nationally alongside three distinct liquor retail chains.

The regulator stated that full-line supermarkets typically require 1,500 to 4,000sqm of retail space to stock a standard range of approximately 20,000 grocery items.