ACS

  ACS Response to CCs Provisional Findings

ACS has today published its response to the Competition Commission’s Provisional Findings Report. In the submission ACS has provided the Commission with further evidence to prove that we are witnessing a sustained decline in the number of convenience stores in the UK. This new evidence has been provided by confidential sources made up of suppliers, wholesalers and market analysts.

The submission has also;
- re-iterated concerns over the way the CC has neglected to properly evaluate the impact of below cost selling on groceries and related products including fuel;
- re-iterated the importance of buying price differentials to supermarket buying power and competition.
- outlined the competition problems caused by the entry of major multiples into the convenience store sector;
- re-emphasised the waterbed effect theory and considered weaknesses in the CC’s analysis thereof/of it;

Chief Executive James Lowman said: “It is a great shame that, several months after we explained clearly why the Commission’s analysis of store numbers in our sector was flawed, we are once again rehearsing these arguments. The latest data used by the Commission, from the Office of National Statistics, is as unreliable as the Experian-Goad database the Commission has erroneously given credence to up until this point.

“We have presented new data from suppliers, wholesalers and independent market analysts to show the decline in our sector, and we believe the Commission will listen to this new evidence and come to a more realistic view on store numbers in its final report.

“What the Commission should really be doing is looking at why these stores are closing down and what impact that has on competition. We contend that some of the pricing activity of the major multiples is predatory, and that the loss of independent stores leads to a decline in choice and particularly harms less mobile consumers.”

ACS is to have its third formal hearing with the Commission on 12 December.


Contacts:

Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978

Nina Collins Communications Co-ordinator
01252 515001

Michael Saxton/ Julie Kirby Grappa PR
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. ACS has published an edited non-confidential version of its response to Provisional Findings. This is available at www.acs.org.uk