A blog on issues affecting Australia's newsagents, media and small business generally. More ...

ACCC Transparency Order not enough

The transparency order issued by the ACCC in relation to Australia Post does not adequately address concerns of newsagents, not this newsagent at least.

Australia Post, 100% Australian Government owned, has a massive advantage over independently owned newsagencies. Research would reveal significant leasing advantages, operational advantages, cross subsidies from the postal service to retail, lower customer acquisition costs (thanks to exclusive mail services) for general retail sales and the might of the brand. The executives at Post have morphed the public service post office into a retail giant and it is businesses like newsagencies which are now suffering as a result.

Australia Post, with its current focus on retail growth and competition against newsagents, poses a huge threat to the viability of the newsagent channel. They continue to encroach of product categories which used to be the deomain of newsagents. Yet they refuse to make postal products available to newsagents on an equitable basis.

A government concerned about small business would establish an enquiry into the viability of the newsagency channel in the face of the competition from Australia Post in the non postal retail products and service categories.

What business does the government have owning such a commercial enterprise?

0 likes
Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image