Sunday, 6 May 2007

Supplier Difficulties

Interesting article in the Sunday Telegraph today. The article looks at two aspects of Tesco's power - the fact that the Competition Commission is having to subpoena information from Tesco suppliers, and the impact Tesco is having on the Irish retail market.

The Competition Commission is acting on concern that supermarkets are using their power over suppliers to distort the market, but has found it difficult to investigate relationships between Tesco and its suppliers. A spokesman for the Commission said,

"This is not something we do lightly. But it gets to a point when you believe that there is relevant information that you haven't been able to get."

Meanwhile in Ireland, local trade associations and competitions are concerned about Tesco's use of the planning appeal process. A spokeswoman for trade organisation RG Data, told the Sunday Telegraph,

"All our objections to Tesco are based on planning decisions alone. We do not make spurious objections. Tesco is a company that is three or four times the size of the entire Irish retail market, and it is amazing that it is attacking a small retail organisation."

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