ACS Welcomes Competition Commission Statement Heralding Comprehensive Review of Grocery Market
15 Jun 2006
The Association of Convenience Stores (ACS), the voice of over 32,500 local shops, has welcomed today’s announcement by the Competition Commission of the issues it will look at in its review of the grocery market.
The Commission has stated that the inquiry will include consideration of the relationship between retailers and suppliers, the entry of the big four grocery retailers into the convenience sector, practices such as price-flexing and below cost selling, and ways in which planning law is applied to the retail market.
ACS Director of Public Affairs James Lowman said: “This is exactly the sort of inclusive and thorough review that we have been asking for. The Commission is looking at the market from top to bottom, from issues around buying power and the relationship between retailers and suppliers, through to the pricing tactics that we believe can amount to predatory pricing. We welcome this statement of issues, in particular its emphasis on the way in which the market serves the consumer. We contend that the reduction in choice and the concentration of buyer power in only a few hands is damaging to consumer interests.
“All our members are calling for is a level playing field on which to compete. At present, the “big four” have market power which they can use to target smaller retailers. By looking at the whole of the market, the Commission will be able to examine the buying and pricing practices that we are concerned about and see the way in which the “big four” use their financial muscle to acquire and develop sites.
“The Commission’s statement also opens the door to an examination of related products which have an impact on the grocery market, such as fuel. We believe that the fuel pricing policies of the “big four” are examples of how below cost selling and the exercise of market power can be to the detriment of competition and the consumer.
“ACS will work closely with the Commission throughout the inquiry.”
Notes to Editors
1. The Association of Convenience Stores (ACS) was formed in 1995 as the retail trade association for the UK convenience store sector. ACS is the fastest growing trade association in the UK retail market, representing over 32,500 shops.
2. ACS was instrumental in bringing about a Competition Commission inquiry, having run a successful legal challenge to the Office of Fair Trading’s initial decision not to refer the market for the Commission inquiry.
3. ACS, working with fellow trade bodies the Federation of Wholesale Distributors and the Scottish Grocers Federation, submitted detailed evidence to the Commission last week.
4. A copy of the Competition Commission’s Statement of Issues is available on their website: http://www.competition-commission.org.uk/inquiries/ref2006/grocery/pdf/issues_statement.pdf
The Commission has stated that the inquiry will include consideration of the relationship between retailers and suppliers, the entry of the big four grocery retailers into the convenience sector, practices such as price-flexing and below cost selling, and ways in which planning law is applied to the retail market.
ACS Director of Public Affairs James Lowman said: “This is exactly the sort of inclusive and thorough review that we have been asking for. The Commission is looking at the market from top to bottom, from issues around buying power and the relationship between retailers and suppliers, through to the pricing tactics that we believe can amount to predatory pricing. We welcome this statement of issues, in particular its emphasis on the way in which the market serves the consumer. We contend that the reduction in choice and the concentration of buyer power in only a few hands is damaging to consumer interests.
“All our members are calling for is a level playing field on which to compete. At present, the “big four” have market power which they can use to target smaller retailers. By looking at the whole of the market, the Commission will be able to examine the buying and pricing practices that we are concerned about and see the way in which the “big four” use their financial muscle to acquire and develop sites.
“The Commission’s statement also opens the door to an examination of related products which have an impact on the grocery market, such as fuel. We believe that the fuel pricing policies of the “big four” are examples of how below cost selling and the exercise of market power can be to the detriment of competition and the consumer.
“ACS will work closely with the Commission throughout the inquiry.”
Notes to Editors
1. The Association of Convenience Stores (ACS) was formed in 1995 as the retail trade association for the UK convenience store sector. ACS is the fastest growing trade association in the UK retail market, representing over 32,500 shops.
2. ACS was instrumental in bringing about a Competition Commission inquiry, having run a successful legal challenge to the Office of Fair Trading’s initial decision not to refer the market for the Commission inquiry.
3. ACS, working with fellow trade bodies the Federation of Wholesale Distributors and the Scottish Grocers Federation, submitted detailed evidence to the Commission last week.
4. A copy of the Competition Commission’s Statement of Issues is available on their website: http://www.competition-commission.org.uk/inquiries/ref2006/grocery/pdf/issues_statement.pdf