ACS Welcomes Grocery Inquiry Extension
10 Apr 2007
The Association of Convenience Stores (ACS), the campaigning voice of over 32,500 local shops, has welcomed the decision of the Competition Commission (CC) to extend the timetable for the investigation in to the Grocery Market by three months.
In a letter to the main parties the Competition Commission has notified that its report into competition problems in the grocery market, which was originally scheduled for November 2007, is now expected to be published in February 2008. This also means that the deadline for its provisional findings scheduled for June 2007, is expected in September 2007.
The Commission have announced that they will continue with further analysis of the evidence including:
• any possible waterbed effect, including the model submitted by ACS prior to the Emerging Thinking;
• the prices charged by grocery suppliers to grocery retailers and wholesalers;
• an assessment of barriers to entry into grocery retailing; and
• the impact of below- cost selling and other pricing strategies.
James Lowman, Chief Executive of the Association of Convenience Stores (ACS) said: “This inquiry is a once in a generation opportunity to achieve fairness in the grocery market and is too important to rush the conclusions. We had warned the Commission that the original timetable caused unnecessary pressure on the process. ACS has called for the Commission to prioritise thoroughness over speed and we are pleased that they have heeded our call.
“The Commission has also given further detail on how they are going about measuring competition in local markets; including plans to undertake SSNIP analysis to assess competition in local markets. While we remain willing and able to assist with this work we remain cautious about the use of the SSNIP approach. Our concern is that any analysis is only as good as the data upon which it is based. Collecting that data in the right way is the main challenge that the Commission faces at this stage.
“We wholly reject the simplistic approach to defining consumers as one homogenous group all with access to all shops in a 30 minute drive time that has been put forward to the Inquiry; such an approach is irrelevant to the 27% of households that do not have access to a car. We are confident that this will not be the ultimate conclusion of the Commission.”
Contact:
Rachel Lawson Communications Co-ordinator
01252 515001
Shane Brennan Public Affairs and Communications Manager
01252 515001/07921 372 978
Michael Saxton Grappa PR
020 7486 4448 (ext 222)
Notes
1) ACS is the convenience store champion, helping local shops thrive through lobbying, insight, information and commercial services.
2) ACS’ submissions to the Inquiry are available at http://www.competition-commission.org.uk/inquiries/ref2006/grocery/index.htm.
In a letter to the main parties the Competition Commission has notified that its report into competition problems in the grocery market, which was originally scheduled for November 2007, is now expected to be published in February 2008. This also means that the deadline for its provisional findings scheduled for June 2007, is expected in September 2007.
The Commission have announced that they will continue with further analysis of the evidence including:
• any possible waterbed effect, including the model submitted by ACS prior to the Emerging Thinking;
• the prices charged by grocery suppliers to grocery retailers and wholesalers;
• an assessment of barriers to entry into grocery retailing; and
• the impact of below- cost selling and other pricing strategies.
James Lowman, Chief Executive of the Association of Convenience Stores (ACS) said: “This inquiry is a once in a generation opportunity to achieve fairness in the grocery market and is too important to rush the conclusions. We had warned the Commission that the original timetable caused unnecessary pressure on the process. ACS has called for the Commission to prioritise thoroughness over speed and we are pleased that they have heeded our call.
“The Commission has also given further detail on how they are going about measuring competition in local markets; including plans to undertake SSNIP analysis to assess competition in local markets. While we remain willing and able to assist with this work we remain cautious about the use of the SSNIP approach. Our concern is that any analysis is only as good as the data upon which it is based. Collecting that data in the right way is the main challenge that the Commission faces at this stage.
“We wholly reject the simplistic approach to defining consumers as one homogenous group all with access to all shops in a 30 minute drive time that has been put forward to the Inquiry; such an approach is irrelevant to the 27% of households that do not have access to a car. We are confident that this will not be the ultimate conclusion of the Commission.”
Contact:
Rachel Lawson Communications Co-ordinator
01252 515001
Shane Brennan Public Affairs and Communications Manager
01252 515001/07921 372 978
Michael Saxton Grappa PR
020 7486 4448 (ext 222)
Notes
1) ACS is the convenience store champion, helping local shops thrive through lobbying, insight, information and commercial services.
2) ACS’ submissions to the Inquiry are available at http://www.competition-commission.org.uk/inquiries/ref2006/grocery/index.htm.