Former OFT boss John Bridgeman has called for a fresh investigation into the way the major multiples monopolise food retail in the UK.
Bridgeman said the situation had changed since he initiated a competition inquiry in 2000 and a renewed focus was justified.
The speed with which Tesco had cornered the small shop convenience sector was of particular concern, he said.
According to market analysts CACI, Tesco controls 67 out of 120 postal districts in the UK, followed by Asda with 23, Sainsbury’s with 14, and Morrison’s with 13.
And even where Tesco is not top, it typically has the second-highest market share, said CACI’s senior analyst Carl Bradbrook.
Bridgeman’s request follows Wal-Mart boss Lee Scott’s plea for the government to examine Tesco’s power, and Sainsbury’s ceo Justin King’s claim that the OFT should be allowed to scrutinise Tesco’s plans for expansion.
The leading retailer recently admitted plans to double the number of its Express stores to 1,200 and it has already acquired enough land to open 180 new stores.
Bridgeman advised that a new inquiry assess whether the top four supermarket have been abusing their power in the race to dominate convenience shopping.
He claimed the issue of convenience stores had been excluded in the 2000 enquiry but supermarket dominance of this sector had become so serious that the issue could no longer be overlooked.
“Supermarket acquisition of the convenience market has been unfortunate…(and) at the expense of choice,” he said.
