Tuesday 30 January 2007

Daily Telegraph: Tesco Prepares for the Battle of St. Albans

Saturday's Daily Telegraph contained the articleTesco Prepares for the Battle of St. Albans.

While concerned St. Albans residents have been busy organising a campaign to make local citizens, businesses and market stall holders aware of the possible implications of Tesco's plans, Tesco itself was argueing to the Daily Telegraph that the planning process for such stores should actually be streamlined to make it easier to open new stores. The Telegraph says,

"The Competition Commission, the government's anti-trust watchdog, has been investigating Britain's grocery market for several months for alleged predatory pricing by supermarkets.

Just 48 hours before the meeting in St Albans, the commission revealed that it is now focusing on what happens on a local level.

"We have now gathered a large amount of evidence about the overall picture and can now look in detail at the situation locally. We need to see what choices shoppers have in particular areas," said Peter Freeman, the commission's chairman.

While investors may have shrugged off the news, sending shares in Tesco and J Sainsbury marginally up on the day, the concern for the companies is that the outrage expressed in St Albans' town hall is not an isolated event. Up and down the country consumers have taken to protesting at the relentless expansion drive of Tesco.

What has driven them on to the streets is not just Tesco but the general trend towards giant superstores. Large supermarkets, they say, kill local competition, reduce consumer choice and impact on traditional village life: as the commission's initial findings made clear, the battle is increasingly being fought at a local level in towns like St Albans.

According to people like Dilke, supermarkets are using complex planning laws and land banks — land acquired but not earmarked for any particular development — to block competition.

The planning system is notoriously complex. Getting permission to open a store can take years, requires a raft of complicated tests and involves dealing with a myriad of stakeholders. Retailers argue it is the system, rather than their actions, that creates inquality and delays in opening stores.

Lucy Neville-Rolfe, a Tesco board member, says what is needed is less bureaucracy. "We would like to see things move faster, with fewer interventions. We would still have local consultation but there would be fewer tiers and less bureaucracy," she says.


[Full Article on Telegraph.co.uk]

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