ACS to Tell CC: "Independent Retailing is Vital to a Healthy Grocery Market"
11 Jun 2007
The Association of Convenience Stores (ACS) will have its second formal hearing before the Competition Commission on Thursday 14th June. This will mark an important development in the long running and detailed Inquiry. ACS has been making the case for change across a number of issues including:
• the anticompetitive impact of supermarket practices in dealing with suppliers;
• the impact of predatory pricing activity, whether that be persistent below cost sales of alcohol or voucher promotions;
• the allowing of acquisitions of hundreds of convenience stores, in spite of a dominant position in the grocery market.
ACS has been critical of the Commission’s approach, especially the gathering of evidence from supermarkets and suppliers about buying prices and other dealings. ACS has also raised concerns about their approach to market definition.
ACS Chief Executive James Lowman: “We are going into our second hearing with the Commission confident that we have made a strong case for change. Our overriding point from the start has been that the grocery market is competitive and sustainable only if there is a place for a strong independent retail sector. In order to ensure that the independent sector remains competitive there has to be intervention to ensure that they can compete on a level playing field, both when they buy product from suppliers and when they operate in local markets.
“We will use this opportunity to press home our case against the Competition Commission’s short sighted statement in the Emerging Thinking report that there is no differential in buying prices between large and small buyers. We will reinforce the evidence we submitted based on a detailed analysis of supermarket retail prices compared to wholesale buying prices.
“We will also take on the claims made by supermarkets about how the Competition Commission should define the market. It is wholly wrong to assume that supermarkets only compete with supermarkets. A healthy market for groceries involves competition between retailers of all types and all sizes.”
Contact:
Shane Brennan Public Affairs and Communications Manager
ACS
01252 515001 / 07921 372978
Rachel Lawson Communications Co-ordinator
ACS
01252 515001
Notes to Editors:
1. ACS is the convenience store champion, helping local shops thrive through lobbying, insight, information and commercial services.
2. ACS’ submissions to the CC hearings are available on the Competition Commission’s Grocery Market Inquiry homepage: http://www.competition-commission.org.uk/inquiries/ref2006/grocery/index.htm
• the anticompetitive impact of supermarket practices in dealing with suppliers;
• the impact of predatory pricing activity, whether that be persistent below cost sales of alcohol or voucher promotions;
• the allowing of acquisitions of hundreds of convenience stores, in spite of a dominant position in the grocery market.
ACS has been critical of the Commission’s approach, especially the gathering of evidence from supermarkets and suppliers about buying prices and other dealings. ACS has also raised concerns about their approach to market definition.
ACS Chief Executive James Lowman: “We are going into our second hearing with the Commission confident that we have made a strong case for change. Our overriding point from the start has been that the grocery market is competitive and sustainable only if there is a place for a strong independent retail sector. In order to ensure that the independent sector remains competitive there has to be intervention to ensure that they can compete on a level playing field, both when they buy product from suppliers and when they operate in local markets.
“We will use this opportunity to press home our case against the Competition Commission’s short sighted statement in the Emerging Thinking report that there is no differential in buying prices between large and small buyers. We will reinforce the evidence we submitted based on a detailed analysis of supermarket retail prices compared to wholesale buying prices.
“We will also take on the claims made by supermarkets about how the Competition Commission should define the market. It is wholly wrong to assume that supermarkets only compete with supermarkets. A healthy market for groceries involves competition between retailers of all types and all sizes.”
Contact:
Shane Brennan Public Affairs and Communications Manager
ACS
01252 515001 / 07921 372978
Rachel Lawson Communications Co-ordinator
ACS
01252 515001
Notes to Editors:
1. ACS is the convenience store champion, helping local shops thrive through lobbying, insight, information and commercial services.
2. ACS’ submissions to the CC hearings are available on the Competition Commission’s Grocery Market Inquiry homepage: http://www.competition-commission.org.uk/inquiries/ref2006/grocery/index.htm