The Association of Convenience Stores (ACS) has today published its full submission to the Competition Commission, focussing on three main areas: the inaccurate definition of the grocery market place, buyer and seller power of the supermarkets and the planning system.
The submission was submitted in September and has now been posted for public consumption on the Association’s web site, www.thelocalshop.com.
ACS compiled the submission with the aid of the Federation of Wholesale Distributors (FWD), the Scottish Grocers Federation (SGF) and the Northern Ireland Independent Retailers Trade Association (NIIRTA).
ACS chief executive James Lowman said: “We want to be transparent about our evidence to the Commission and the case we are making for a fairer market. Our submission makes the case that the market is not functioning in the interests of consumers. The differential between the buying power of the Big Four and other retail and wholesale buyers is widening, and unless this is addressed, then we will continue to see consumer choice eroded.
“ACS and our members, along with our colleagues in the FWD, SGF and NIIRTA, have invested heavily in the independent and convenience store sector’s response to the Competition Commission inquiry. This response has already been supplemented with further evidence following our hearing with the full Commission panel, and we will be sending more evidence during November.”
The paper focuses on three main areas, said an ACS statement:
1)“The inaccurate definition of the grocery market place used by the competition authorities to assess acquisitions in the convenience store sector. The ACS submission argues that there are two market places for the Competition Commission to consider: the market for the purchase and distribution of products (“the wholesale market”) which is one national market; and the retail market, which is primarily local.”
2)“The buyer and seller power of the supermarkets. The submission argues that buyer power is becoming ever more concentrated with the Big Four grocers. Far from benefiting the consumer, this trend is undermining choice by threatening the future of independent retailers.”
3)“The planning system is an ineffective check on the further dominance of the major supermarkets. National planning policy promoting town centres is vitally important to the sector, and should be made stronger and more efficient.”
John Murphy, director general of the Federation of Wholesale Distributors, said: “We are standing shoulder to shoulder with ACS, the SGF and NIIRTA on this issue. In this submission, and in our own hearings with the Commission, we have made clear that buyer power is the heart of the problem. In recent years the competition authorities have not been effective in tackling the consequences of the continued growth of the major multiples, and this inquiry must mark a watershed in their treatment of this vitally important market.”
The submission was supported by economic consultants Europe Economics and legal advisors Edwin Coe.
* The Association of Convenience Stores (ACS) was formed in 1995 as the retail trade association for the UK convenience store sector. ACS represents over 32,000 local shops.
