Coles defends its market domination

The boss of Wesfarmers, which owns Coles supermarkets, says he can't understand why the grocery giant gets blamed for the farming sector's woes.

Coles shopping trollies

The head of the company behind Coles has defended the grocery giant's relationship with farmers. (AAP)

The head of the company behind Coles has defended the grocery giant's relationship with farmers, saying the high dollar and government regulations are a weight on the agricultural sector.

"I get a bit perplexed when Coles is blamed for many of the challenges in the farming and food sector today," Wesfarmers managing director Richard Goyder told the company's annual general meeting.

"Farming and food industries are not helped by our strong currency, as well as productivity issues and cumbersome regulations.

"It is just too easy, too simplistic, to blame the supermarkets for a lot of these difficulties."

He said Coles' market share was less than most commentators stated, and had increased competition in the supermarket sector.

"We sometimes make mistakes," Mr Goyder said.

"We are not perfect, and we are very conscious of the important role we play in Australia for all our stakeholders.

"Coles is focused, as it must be, on giving the people of Australia a shop they trust, delivering quality, service and value.

"And we are committed to doing this in a way that treats customers, suppliers and our employees with fairness and respect."

Wesfarmers also owns Target and K-Mart, and chairman Bob Every said the group still sourced products from Bangladesh, China and Cambodia in order to remain internationally competitive.

While the company had considered pulling out of Bangladesh following garment factory deaths, non-government organisations and charities had told Wesfarmers it would harm all parties as the garment industry is a major employer, Mr Every said.

"Businesses like ours help provide a pathway out of poverty and unemployment," Mr Every said.

Mr Goyder said Wesfarmers' retail businesses were trading in line with expectations and were well placed for the Christmas season.

Shareholders approved Wesfarmers' executive pay for the 2012/13 financial year, which included remuneration of $10.7 million for Coles chief executive Ian McLeod, and $8.5 million for Mr Goyder.


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Source: AAP


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