Competition Commission interim report into grocers splits opinion

The Competition Commission has issued its “emerging thinking” document as part of its probe into the UK grocery industry and has immediately split opinion.

The Commission appears to have some concerns about the dominance of the main players, saying ”We are concerned with whether Tesco, or any other supermarket, can get into such a strong position, either nationally or locally, that no other retailer can compete effectively.”

This was supported by James Lowman of the Association of Convenience Stores, which represents 32,000 local shops.  Loman said “They have identified strong indications of anti-competitive practices in the UK grocery market that need further detailed consideration”.

Other commentators were not so certain that the largest four grocers should be concerned.  One of those, Southampton University’s Dr John Marti said the report had offered “not a lot” for those looking to criticise the big four.

Tesco’s CEO Sir Terry Leahy also appeared to agree, saying “I believe passionately that consumers have benefited in so many ways from the intense competitive rivalry in this industry.”

You can read more at http://www.competition-commission.org.uk/

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