MELBOURNE: Australian department store Myer has been authorised to launch cross promotions with its concession stores. The Australian Competition and Consumer Commission (ACCC) will allow the department store to invite its concession businesses to participate in various promotions until September 2013.
Myer concession businesses such as Carla Zampatti, Charlie Brown and Cue license or rent space from the department store and operate independently of its core. The ACCC was concerned cross promotions would encourage an agreement between competitors on a common level of discount – in particular, agreements which would limit the level of discounts offered.
However, the ACCC decided concession businesses choosing to participate in Myer promotions would be more likely to offer larger discounts to customers than through independently run promotions.
ACCC chairman Graeme Samuel said the decision was mutually beneficial for both customers and businesses.
"The ACCC considers that the arrangements will result in public benefit in the form of reduced prices for consumers by facilitating the participation of concession businesses in periodic sales. The ACCC also considers the arrangements are likely to continue to encourage price competition between Myer and its competitors."