Hardware giant Bunnings' market power is coming under scrutiny tonight after the ABC's Four Corners uncovered allegations that the retailer could be abusing its massive reach behind the scenes. Smaller competitors claim the hardware giant is misusing its market power to stifle competition.
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00:00David Woodman's family has owned hardware stores for generations.
00:08This one is under threat.
00:10Bunnings have bought the property next door.
00:13They're going to build a 15,000 plus square meter box next door to us.
00:17That's eight times the size of David's store,
00:20and he says that when Bunnings sets up, profits are likely to decline sharply.
00:25Being a small family business, we can't sustain that,
00:27so we'd probably end up shutting the store.
00:29Bunnings Market Power came under scrutiny as part of a Senate inquiry last year.
00:34Now other suppliers share their stories with ABC's Four Corners.
00:39We've lost everything that we put back into the business simply to supply Bunnings.
00:47It's insane how big companies like Bunnings can get away doing what they do.
00:56Another former supplier is suing the company, alleging that Bunnings sent their furniture manufacturer broke.
01:02We ticked all the boxes for them, and then the sales just didn't happen.
01:08It's meant the business has literally wound up.
01:13A former Bunnings sales manager is also taking the hardware giant to court, claiming that he was fired after raising concerns about staff underpayments, bullying and potential anti-competitive conduct.
01:26Bunnings says that it's vigorously defending the court action against it and that it categorically rejects those claims by its former manager.
01:35It says it treats suppliers with fairness and integrity and that its expansion plan is all about enhancing competition.
01:44But that's not how it feels to David Woodman as he prepares to launch legal action against Bunnings in a last ditch attempt to save his store.
01:53We won't give up. We owe it to the staff to fight and so we'll do what we can to stay open.
02:00A David and Goliath battle.
02:03A David and Goliath battle.
02:07A David and Goliath battle.
02:13A David and Goliath battle.
02:30An Chad Jordan.