Spar may therefore take over the following locations (17 of which with remedies):
- Adnet 400, 5421 Adnet (store with remedies)
- Altaussee 160, 8992 Altaussee (store with remedies)
- Ischlerstraße 317, 8990 Bad Aussee (store with remedies)
- Hauptplatz 22–25, 8330 Feldbach/Thaller
- Dr.-Renner-Straße 1, 4210 Gallneukirchen (store with remedies)
- Waltendorfer Hauptstraße 121, 8042 Graz/Waltendorf (store with remedies)
- Hauptstraße 69, 4232 Hagenberg (store with remedies)
- Raiffeisenplatz 7, 3452 Heiligeneich
- Untere Gewerbezeile 1, 4202 Hellmonsödt (store with remedies)
- Gewerbepark Süd 1, 3052 Innermanzing
- Kellau 195, 5431 Kuchl (store with remedies)
- Ludersdorf 193, 8200 Ludersdorf-Wilfersdorf
- Hauptstraße 570, 3034 Maria Anzbach (store with remedies)
- Grimburgstraße 2, 3124 Oberwölbling (store with remedies)
- Sebersdorf 312, 8272 Sebersdorf (store with remedies)
- Oberwarterstraße 339, 7535 St. Michael im Burgenland (store with remedies)
- Aschacherstraße 25, 4400 Steyr/Christkindl (store with remedies)
- Thalstraße 301, 8051 Thal (store with remedies)
- Stubalpenstraße 10, 8741 Weißkirchen (store with remedies)
- Gleinkerseestraße 32, 4580 Windischgarsten
- Stadtplatz 6, 8680 Mürzzuschlag (store with remedies)
- Lendplatz 395, 8970 Schladming (store with remedies)
- Bräuhof 42, 8993 Grundlsee
Market definition - Analysis of competition situation
The competition assessment focussed primarily on the two sides of the food retail market: effects on consumers and the impact on regional suppliers, with the respective local market being included in the assessment in each case. Catchment areas were determined for the target stores based on the respective region and these were subsequently analysed.
The AFCA assessed each of the 23 stores individually from a competition perspective. This analysis covered in particular the regional structure, the number and accessibility of alternative stores, customer behaviour (including commuters’ behaviour), local circumstances, as well as proximity to other food retail outlets. All competitors and independent Spar retailers throughout Austria, as well as other market participants such as regional and local suppliers, were consulted in the form of comprehensive requests for information.
“The food industry is highly concentrated, and local supply in the relevant regions and the continued existence of regional suppliers also need to be taken into account. The long-term remedies imposed will have a positive impact on competition as they will secure the position of independent retailers,” explains Director General Natalie Harsdorf.
The AFCA defines the relevant product market as full-range food retail. This covers those businesses that sell a comprehensive range of everyday consumer goods to consumers, specifically consumer markets, supermarkets and discounters. Filling station shops, kiosks and similar small outlets, and goods that are not typically sold in traditional food retail shops (e.g. tools or sports equipment), are not included in this market definition.
Geographically, the market is defined locally since consumers usually choose to shop in nearby stores. The local market is defined by catchment areas that reflect a reasonable length of car journey. For the case at hand, a catchment area based on a car trip of between 10 and 20 minutes was assumed, depending on how rural a location was. This was used as the starting point for food retailing in rural areas, with the size of individual catchment areas potentially deviating from this original assumption. Stores located near cities were allocated smaller catchment areas since their customers tend to have a range of different shopping options within close reach.
The Federal Cartel Prosecutor was involved in the negotiations on the remedies and has also cleared the notification.
Remedies
Spar has made commitments for locations in Burgenland, Lower Austria, Upper Austria, Salzburg and Styria.
Retailer remedies
Spar has accepted “retailer remedies” for 17 of the 23 notified locations:
o Altaussee
o Bad Aussee
o Hagenberg
o Maria Anzbach
o Oberwölbling
o St. Michael
o Thal bei Graz
o Weißkirchen
o Mürzzuschlag
o Schladming
o Adnet
o Gallneukirchen
o Graz / Waltendorf
o Hellmonsödt
o Kuchl
o Sebersdorf
o Steyr / Christkindl
The remedy ensures that the stores that are taken over can be operated by independent Spar retailers in the long term. These operators can to a large extent make their own decisions on pricing and product ranges, thereby not only strengthening competition with other food retailers but also with Spar’s own branches and other independent Spar retailers. Since these operators are free to decide which products to stock, regional and local suppliers will still be fully able to deliver to such stores. By offering specific products, retailers can cater to local customers’ needs and preserve regional variety. The remedy not only protects consumers but also helps small regional businesses, ensuring that they will continue to have regional buyers even after the takeover.
The remedies apply for 10 or 20 years, creating long-term planning security for retailers as well as regional and local suppliers.
Acquisition ban
With regard to seven of the 17 stores subject to remedies, Spar additionally undertakes not to acquire any other food retail outlets reachable within five minutes by car within the next 20 years if such an acquisition would be below the statutory notification thresholds. This should prevent any further mergers without official examination in a market that is already highly concentrated. The aim is to uphold variety in regional local supply in the long term.
This remedy concerns the following locations:
o Adnet
o Gallneukirchen
o Graz / Waltendorf
o Hellmonsödt
o Kuchl
o Sebersdorf
o Steyr / Christkindl
Case report
The AFCA will publish an extensive case report about the merger on its website in a timely fashion, including detailed information about the procedure itself and the competition analysis of each individual store location.
The exact remedies agreed can be found here (in German): Z-7178 SPAR Österreichische Warenhandels-Aktiengesellschaft; UNIMARKT Handelsgesellschaft m.b.H. & Co. KG