Grocery Market Inquiry
After the Grocery Market Inquiry……
Following a long campaign and an intensive two year period the Grocery Market Inquiry came to an end in April. The conclusions of the report have been widely criticised. In this piece we review the campaign so far, explain what legacy the Inquiry has left and where this important and powerful campaign goes next.
How We Got Here
November 2004 – ACS and Friends of the Earth made a joint request to the Office of Fair Trading (OFT) for a full investigation of the Grocery Market.
August 2005 – after a long delay the OFT refused the request for an investigation, citing that the grocery market worked well for consumers. ACS made a bold decision to launch a legal appeal.
September 2005 – the OFT made the unprecedented decision to withdraw their decision not to allow an Inquiry. Complete vindication for ACS.
May 2006 – Success. The OFT finally refers the market to the Competition Commission who begin a two year Inquiry
April 2008 – After two years, reams of evidence, many hearings and four main reports the CC publishes its final report. It recommends:
- The creation of a new ombudsman to oversee the way the biggest retailers deal with their suppliers.
- A new competition test targeted at the biggest retailers to prevent them building supermarkets in an area where they are already dominant.
- A ban on any restrictions being placed on land or buildings sold by a big retailer to a competitor.
Campaigning for a fairer market
There are three main priorities for the next phase of our campaign:
An Ombudsman that works….
The Competition Commission has found that the existing restrictions on the way the biggest supermarkets deal with their suppliers is not working. They are proposing a new code of practice called the Grocery Supplier Code of Practice (GSCOP) and they have signalled that their preference is for this to be overseen by a new ombudsman.
Between now and January the Competition Commission will be seeking agreement with the retailers that would be subject to the new Code to submit themselves to the new Ombudsman. If this fails the Commission will hand over the issue to Government and recommend that they bring in an Ombudsman through legislation. Without political pressure there is a strong chance that the creation of an Ombudsman will be delayed and weakened.
ACS is making the case for an Ombudsman that has the right powers to actually prevent the supplier abuses that have the knock on effect of harming retailers.
Strong Town Centre First Planning Policy ….
Following the Competition Commission’s recommendation that the Government change planning rules of out of town supermarkets to make it harder for a major retailer that is already dominant from building more stores, ACS is focusing on making sure Government makes the right changes to planning policy.
Government will shortly be setting out their plans for the reform of Planning Policy Statement 6. This is the main planning policy that affects retailing in England and Wales; it covers town centre planning with the aim of promoting their vitality and viability. The reform will incorporate the Commission’s recommendations but will also address a number of other issues with the policy.
ACS is campaigning for a policy that is tough and transparent, ensuring that out of town supermarkets are subject to rigorous controls and that Local Authorities are planning for diversity and real choice between different kinds of retailing. We are fighting to ensure that there are no changes made to policy that threaten town centres.
Setting out an agenda for change….
The Competition Commission ultimately ducked the big issues, how can we ensure that there is a genuinely diverse retail offer in the UK for the long term?
ACS is taking its message to Ministers, MPs and local decision makers. Government at local and national level must take ongoing consolidation, decline in small shop numbers and the loss of choice seriously.
As we move past the conclusions of the Inquiry the campaign enters a new phase, setting out the policy priorities that will make a real difference to retailing in the UK.
If you would like any more information on ACS’ ongoing work in this area or would like to get involved speak to the public affairs team on 01252 515001.