The Australian Competition and Consumer Commission has granted authorisation* for Myer to invite concession businesses operating within Myer and Grace Bros department stores and Megamart stores (Myer Stores) to take part in storewide and category wide discount promotions or bonus Fly Buys points offers run by Myer.
"This authorisation allows consumers to take advantage of discounted prices offered by concession businesses who elect to participate in Myer Stores discount promotions", ACCC Chairman, Professor Allan Fels, said today.
Concession businesses are those which license, or rent floor space from Myer. These 'stores within stores' display and sell only their brands and products, and are operated independently of Myer. Prices are set by the concession businesses independently of Myer. Concession businesses operating within Myer Stores include a variety of women’s, men’s and children’s wear labels, and table top (homewares) ranges.
"Prior to applying for authorisation any promotional activity run by Myer stores, including promotions where customers were offered fixed percentage discounts or benefits store or category wide, excluded concession businesses. This was because any such agreement between Myer and the concession businesses would be likely to constitute an agreement between competitors on price, which would raise concerns under the Trade Practices Act 1974. This authorisation now allows Myer to include concession business in its promotional discounts.
"The ACCC granted interim authorisation to the arrangements late last year. This allowed Myer to offer discounts jointly with its concession businesses while the ACCC considered the merits of the application. Since then Myer has run several joint promotions with its concession businesses, most notably, including concession businesses in discount promotions run as part of its post Christmas sales for the first time. Today's decision allows Myer to include concession businesses in its discount promotions on an ongoing basis.
"The ACCC would generally be concerned about agreements between competitors to agree on a common level of discount, particularly where such agreements served to limit the level of discounts offered by concession businesses. However, in this instance the ACCC has accepted that concession businesses choosing to participate in Myer promotions are likely to offer larger discounts to their customers than would be the case through their own independently run promotions.
"The authorisation does not allow any agreement between Myer and the concession businesses to raise prices", Professor Fels said.
The authorisation does not compel any party to participate in the proposed arrangements, but will provide immunity against prosecution under the Act for the conduct authorised. Individual concession businesses retain sole discretion over whether they chose to participate in discount promotions run by Myer stores.