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'Tesco test' will help rivals but not small shops
Benedict Moore-Bridger and Jonathan Prynn15 Feb 2008
A new "Tesco test" aimed at preventing towns becoming dominated by a single supermarket chain will be proposed.
Competition chairman Peter Freeman is expected to set out the details of a new test in which planners would consider the identity of a supermarket and its local market share before granting planning permission.
So if, for example, Tesco already had five branches in a town, the new planning rules would favour applications from a rival such as Asda or Sainsbury's.
The test, part of a report into Britain's £100billion grocery market, is designed to foster competition between supermarkets for the benefit of shoppers.
But campaigners for small shops have said it will do little to protect independent stores from the supermarket onslaught, highlighted by the Evening Standard's Save Our Small Shops campaign. One said the test was a "death warrant" for small shops because it calls for an increase in supermarkets.
Today's provisional report from the Competition Commission, published after the Stock Exchange closes at
4.30pm, will recommend key changes to the planning system.
In October, the commission's provisional findings revealed about 200 areas of the country where consumers had little choice of where to shop.
It said: "A lack of competition in certain-local markets not only disadvantages consumers in those areas but also allows retailers to weaken their offer to consumers nationally."
The commission also found that of 520 landbank sites owned by supermarkets, more than one fifth were potentially being used specifically to stop rivals building competing stores.
Tesco, which has the most to lose from the report and risks being forced to sell off its land banks, has argued that the proposals are "not reasonable, practicable or proportionate".
Neither has the plan found favour with campaigners for more protections for small shops.
James Lowman, chief executive of the Association of Convenience Stores, which represents 33,000 local shops, said: "Introducing a competition element should not be used to promote more development against the wishes of local people."
The report is the third into the sector's competitiveness since 2000.
Other proposals outlined in the October report, and which could feature in today's announcement, included reviewing the planning system to allow greater scope for developments on the edge of town centres, while maintaining constraints on out-of-town supermarkets.
Sandra Bell, the food campaigner at A CAMPAIGN to attract people back to Camden Town was launched today, six days after the market was hit by a fire.
Newspaper and radio adverts will urge tourists and shoppers to return, emphasising the damage has not affected the whole area.
The blaze wiped out the Canal Street market and badly damaged the Hawley Arms, frequented by Amy Winehouse, Lily Allen and Kelly Osbourne. But Camden's five other markets are still up and running.
James Bidwell, chief executive of Visit London, said: "Camden is an important part of London's tourism offer and, thankfully, the fire has only affected a small part of the market. Camden is still open for business and Londoners should continue to visit the area and support the market."
Simon Pitkeathley, chief executive of Camden Town Unlimited, said: "Though the fire was a tragedy, the Camden Town everyone knows and loves is still here."
Allen is expected to endorse the campaign, along with comedian Jimmy Carr and Radio1 DJ Chris Moyles, who was in Camden on Saturday, the night of the fire.
Friends of the Earth, said: "If the Government follows the flawed advice of the Competition Commission it will be signing a death warrant for our high streets and for independent shops."
A spokesman for the Department for Communities and Local Government made clear that it was committed to protecting trade in town centres.
"That's why we are introducing a new, tougher impact test that better protects town centres and leads to more consumer choice and increased competition in the high street. We will shortly be publishing proposals for consultation," he said.
It is also anticipated that Mr Freeman will detail the powers of a new ombudsman to supervise the relationship between the "big four" supermarket chains - Tesco, Sainsbury's, Asda and Morrisons - and their suppliers.
Suppliers have claimed they are forced to bear the brunt of supermarkets' price-cutting promotions.
Reader views (2)
What small-town Britain may want to think about is that Britain gave birth to the cooperative retail movement, thanks to the Rochdale Pioneers of 1844.
So what would prevent cooperative retailing models from being studied as a viable generator for small-town and rural socio-economic empowerment, remembering the Rochdale Pioneers' example?
- Iludiumphosdex, Winona, Minnesota (USA), 27/02/2008 22:14
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Of course these changes will not help small shops. The way to do this is to contain (and indeed turn back the tide) of the endless avalanche of rules, laws and directives which do so much damage to smaller retailers. The big players can afford to cope with this stuff more easily simply by virtues of economics of scale. Attacking supermarkets and making life more difficult for them is the wrong way. Make life difficult for supermarkets = more expensive food. If you look at the endless attacks by Tory, LibDem and Labour local authorities on small businesses in the capital, you'll see they are revenue and control driven. No campaign to save/revive or assist small shops will mean a thing unless its centrepiece is the scrapping of a lot of laws and hassle - but of course most of these laws are from the EU, eagerly welcomed by local bureaucrats with an eye on more fines, more charges and more government jobs...and of course as everyone knows, we are barred from scrapping any EU law.
- Damian Hockney Am, London, 15/02/2008 18:10
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