A business support and lobby group is urging the Competition Commission to consider the plight of Britain’s small retailers, instead of the major supermarkets.
Responding to the news that the commission is planning a ‘competition test’ to stop the big four brands running local monopolies, the Forum of Private Business (FPB) said the announcement would do nothing to help struggling independent shop owners.
The FPB believes the commission’s plans will make little difference to smaller retailers already struggling to compete against the free parking facilities, high-level lobbying activities and bulk buying power of the major supermarkets.
The competition test, which would be implemented before planning permission is given for a new store, may stop one brand from dominating a certain local area and has been welcomed by Asda, which says it will be a victory for consumer choice.
However, the FPB believes it would do little to help halt the demise of independent retailers up and down the country and is calling for the commission to do more to help them remain competitive.
As long ago as 2006, the All-party Small Shops Group warned that with around 2,000 small shops closing every year, the majority of the UK’s independent retailers could disappear by 2015.
Now, with the recession driving more and more shoppers to discounted supermarkets, the FPB is concerned that the situation is even worse for shop owners and believes the commission should be focusing its efforts on helping them.
FPB chief executive Phil Orford said: “It’s all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive.
“I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission. Instead, I would urge the commission to focus its efforts on helping independent retailers, which are the lifeblood of the British high street, to remain viable against the competition from the supermarkets.”
