An air of vindication enveloped the Association of Convenience Stores annual conference in Birmingham, as the sector reflected on the referral of the supermarkets to the Competition Commission.
ACS chief executive David Rae was hailed a hero for his tireless work to convince the Office of Fair Trading of the need to refer the multiples. He said that the initial aim when the association decided to go down the route was to give the OFT a “bloody nose” and admitted there was a feeling at the time that there was only a “35 per cent chance” of forcing a climb-down.
But a £200,000 spend by ACS members has played a large part in forcing the OFT’s hand, and the decision to refer the multiples for inquiry has been greeted as a watershed for the c-store sector.
Rae said: “The grocery market needs to be looked at. The buying power of the major multiples skews the market in their favour, and means that scale, not retailing skill, is the critical factor for succeeding in the market.
“We believe the commission should identify remedies to ensure transparent buying prices, to tackle predatory pricing, and to better control acquisitions in the convenience store sector. Measures such as this could help to promote a more diverse grocery market for the benefit of consumers.”
Rae also announced his decision to stand down as ACS chief after five years at the helm.
