Competition Commission Reports Findings

Busy Tesco Superstore in Hatfield
Originally uploaded by tescocampaign.

The Competition Commission has reported the initial findings of their review of the UK's grocery industry.

BBC News Online explains that, "The commission has been examining the supply chain, planning and land banks of the four big UK supermarkets. Tesco, Asda, Sainsbury's and Morrisons control almost 75% of the UK market. The commission said questions remained whether Tesco or any other supermarket could get into such a strong position that no other retailer could compete."

The BBC's Business Editor Robert Peston said that the findings of the initial review "seem to imply that there is not sufficient competition at the local level."

The BBC article goes on to say that, "The commission said larger stores constrained the prices, product range and service of smaller stores. Below-cost selling by larger grocery retailers" citing the Competition Commission statement which said large grocery retailers "may also unintentionally contribute to the exit of smaller grocery retailers and specialist stores".

The next phase of the Competition Commission's review of the grocery industry will focus on effects of large grocery retails - the big four of which control 75% of the UK grocery market - upon local competition, including that from locally owned and specialist grocers.

The results of the next report are likely to come too late for local shops, businesses and market traders who currently provide local residents with individualised service and a wide choice of goods and providers, but who could be negatively affected if Tesco is allowed to build a superstore on the edge of central St. Albans.

If we believe, as the Competition Commission's initial report seems to imply, that the big four grocery suppliers could inadvertently force smaller grocers and local specialty stores out of business, then we must oppose Tesco's plans now, before they've already built it and it's affects become all to apparent.