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Competition watchdogs today unveiled their latest attempt to clamp down on the power of the large supermarket groups with a tough proposal to prevent them expanding in areas where they already dominate.
The Competition Commission is urging the Government to ban supermarkets that have a 60% market share within a local area from either opening a new store or increasing floor space at the existing one.
Critics of the industry say that one of the ways in which Tesco stifles competition is by making it impossible for rival retailers to muscle in on towns where it has the upper hand.
Peter Freeman, the chairman of the CC, who also oversees investigations into the supermarket sector, says the move should “stop individual retailers consolidating strong positions in local areas to the detriment of consumers”.
He wants a competition test introduced for planning decisions on large stores. The commission proposed this before and was told to beef up its argument. A detailed analysis published today is the result.
Tesco, the biggest grocer with a 30% share, has challenged the recommendation before.
Its legal affairs director Lucy Neville-Rolfe said: “The Government should think very carefully before proceeding with this recommendation and intervening aggressively in what is acknowledged to be a highly competitive industry.”
Reader views (5)
dear/sir/madam can you just pleasetell me why every body is againest tesco when they bring jobs to our towns and citys ok they have a lot of shops but who can afford to go to your local corner shops
- Graham John Gomersall Freeman, HULL yorkshire, 06/10/2009 08:01
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Excellent idea, small is beautiful, the likes of Tesco are changing Britain for the worse!
- George, Bexletheath, 02/10/2009 14:20
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Hopefully some sense at last. Tesco are trying to build a massive store in our small town. There is a level crossing that goes down 6 times a hour and Tesco are ignoring the traffic implications on the area and local residents. We have a number supermarkets within easy reach by car and public transport, a local supermarket will stifle competition of all shops locally and we will become a Tesco Town.
- Su Clark, Highams park UK, 02/10/2009 14:16
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Well that should result in a massive realase of land from the Tesco landbank.
Lets see the land that Tesco will not be permitted to use going to enterprise, industry and any other means of supplying work that is not food retail and used export.
- James, City of London, 02/10/2009 13:52
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Well you see Tesco has only one shop in France...in Calais...can one explain that ? Yes...they can't make it here. Too much competion.
- Edouard, Toulouse. France, 02/10/2009 11:10
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