AUST'S INDEPENDENT GROCERS CALL FOR STRONGER TRADE PRACTICES ACT.

SYDNEY, July 2 Asia Pulse - The Trade Practices Act must be strengthened to combat the dominance of Coles Group Ltd (ASX:CGJ) and Woolworths Ltd (ASX:WOW), which has created one of the most concentrated grocery markets in the western world, say Australia's independent grocers.

And they've warned that unless consolidation is stopped, consumers can expect higher prices at the checkout.

The grocers are calling for a strengthening of the Trade Practices Act, warning that unless consolidation is stopped, consumers can expect higher prices at the checkout.

A report released by the National Association of Retail Grocers of Australia (NARGA) and compiled by PricewaterhouseCoopers, shows the level of concentration in the local grocery market, worth about $A63 billion ($US53.64 billion) annually.

The two supermarkets giants, Coles and Woolworths, today account for 79 per cent of the market, from just 35 per cent in 1975, the report found.

In the UK the top two supermarkets Sainsbury's and Tesco account for just 48 per cent of the market, while in the United States, Wal-Mart and Kroger Co make up just 20 per cent of the market.

NARGA chairman John Cummings today said there was a need to bolster the Trade Practices Act to stop further consolidation, partly caused by what he called the "creeping acquisition" of independent stores.