Woolies wants food and grocery code extended to Bunnings, Amazon and Costco

Online retail giants Amazon, bulk goods store Costco, and hardware chains like Bunnings should be subject to a mandatory code of conduct, Woolworths says, after a major competition review called for tougher and legally enforceable rules in the supermarket sector.

Dr Craig Emerson’s interim review of the Food and Grocery Code of Conduct, released Monday, says the voluntary rulebook designed to protect small suppliers dealing with powerful companies ought to be made mandatory.

In his view, supermarket giants commanding over $5 billion a year in revenue — like Woolworths, its key competitor Coles, and ALDI — should face significant financial penalties for breaching the rules, and should be barred from taking “retribution” against small suppliers that raise complaints.