ACS Responds to Tesco Competition Commission Appeal
01 Jul 2008
ACS has reacted to an appeal lodged by Tesco Stores plc against the findings of the Competition Commission as published in the final report of the Grocery Market Inquiry on the 30th April 2008. ACS Chief Executive, James Lowman said: “Tesco’s appeal should be seen as an attempt to delay and subvert the outcome of the Inquiry.
“The competition test is a timid remedy that would have almost no impact on the encroaching dominance of Tesco in all but a handful of places where they already have in excess of a colossal 60% market share. Tesco’s desire to quash even this indicates how divorced they have become from what is in the best long term interests of consumers. This is a stark indication that they will stop at nothing to stamp out choice in local markets.”
The Planning Competition Test remedy was made by the Competition Commission as a recommendation to Government. The proposal was put forward as a remedy in markets where the Commission concluded that ‘consumers get a poorer retail offer in terms of prices, quality and service than would otherwise be the case, while those grocery retailers with strong local market positions earn additional profits due to weak competition in those markets.’
This appeal will affect ongoing work by the Department for Communities and Local Government who are looking at this alongside further reform of town centre first planning policy. This appeal threatens to slow down the policy making process further and could be viewed as a spoiling tactic.
Contacts:
Shane Brennan Public Affairs Director
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Grappa PR
Julie Kirby 020 7602 9222
Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. The Competition Commission’s recommendation for a competition test is contained in the Grocery Market Inquiry final report available at the following link The competition test would only apply where a supermarket already has, or a result of the proposed development have over 60% share of the local market. The report identifies 160 locations in the UK where supermarkets are in such a position, there is no publicly available figure for Tesco specific sites
“The competition test is a timid remedy that would have almost no impact on the encroaching dominance of Tesco in all but a handful of places where they already have in excess of a colossal 60% market share. Tesco’s desire to quash even this indicates how divorced they have become from what is in the best long term interests of consumers. This is a stark indication that they will stop at nothing to stamp out choice in local markets.”
The Planning Competition Test remedy was made by the Competition Commission as a recommendation to Government. The proposal was put forward as a remedy in markets where the Commission concluded that ‘consumers get a poorer retail offer in terms of prices, quality and service than would otherwise be the case, while those grocery retailers with strong local market positions earn additional profits due to weak competition in those markets.’
This appeal will affect ongoing work by the Department for Communities and Local Government who are looking at this alongside further reform of town centre first planning policy. This appeal threatens to slow down the policy making process further and could be viewed as a spoiling tactic.
Contacts:
Shane Brennan Public Affairs Director
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Grappa PR
Julie Kirby 020 7602 9222
Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. The Competition Commission’s recommendation for a competition test is contained in the Grocery Market Inquiry final report available at the following link The competition test would only apply where a supermarket already has, or a result of the proposed development have over 60% share of the local market. The report identifies 160 locations in the UK where supermarkets are in such a position, there is no publicly available figure for Tesco specific sites