Walmart Australia has announced it will sell its accommodation supply to major retail stores like Walmart, in a move that could potentially cut the price of hotel accommodation in the country.
Walmart Australia said it would sell its supplies to select stores like Costco, Best Western and Homegoods.
Wal-Mart Australia said in a statement on Wednesday that the decision would help retailers “bring the same quality to the market” for “the benefit of our members”.
The Australian Competition and Consumer Commission (ACCC) is investigating whether the move was unfair.
The decision was made because of the rising cost of hotel accommodations in Australia, which has risen from $1.20 to $3.50 per night for one person last year.
The rise in costs means it would take Walmart to lower its prices by about $1,000 per night, according to the ACCC.
The ACCC has previously warned that prices could fall further in Australia as a result of the new competition, although it was unable to provide specific figures.
In a statement, Walmart Australia said the move had been made to improve supply and meet “supply chain and supply chain management needs” and to “create efficiencies and streamline supply chain logistics” for its members.
“We recognise that this is a challenging time for all retailers to meet our customers’ changing needs and this is an important first step towards addressing our supply chain challenges,” the company said.
“The Australian Government has also agreed to provide a range of incentives for retailers to continue to meet customer demand, including $15.50 rebate on all items purchased from Walmart, as well as $25 off eligible purchases for the first 90 days of supply, and the first $5,000 of merchandise purchased from a Walmart outlet.”