The big four retailers could be able to extend the number of hypermarkets and superstores they build in the UK, if the Competition Commission’s (CC) proposals from its enquiry into the grocery market go ahead.
The CC’s report of February 15 stated: “If the grocery retailer’s proposal for a new development has a share of net grocery sales floor space (including the proposed development) of less than 60 per cent, this would be considered acceptable under the competition assessment.”
Peter Wynne-James, managing director of Herefordshire-based marketing and management consultancy MPC Associates, an authority on out-of-town shopping in the UK, France, the Netherlands and the rest of Europe, said: “The commission’s proposed market share limit of 60 per cent is so generous that it will allow new huge expansion opportunities for the big four supermarket groups.”
But Wynne-James said the proposed rules could also offer opportunities for the development of large specialist farmers’ co-operative stores, marketing UK-grown food.
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