The grocery market could find itself the focus of a full Competition Commission investigation after the Office of Fair Trading was ordered to urgently reconsider its decision not to recommend a full inquiry into the sector.

The OFT found itself facing heavy criticism yesterday from Sir Christopher Bellamy, president of the Competition Appeal Tribunal, who said its intention to take a further eight months to decide whether a full inquiry into the grocery market was necessary was “unreasonable”.

The tribunal had been hearing a case, brought by the Association of Convenience Stores, challenging the OFT’s decision to not carry out a review of the sector.

Sir Christopher said if the OFT continued at the same pace, adding time for the Competition Commission investigation, the process could take three to four years. “It would be like shutting the door after the horse has gone,” he added.

David Rae, ACS chief executive, said: “We are pretty pleased with the result. There will be a new decision and the tribunal has, in effect, put a time limit on the OFT.”

He is now calling for a decision within six months. However, that may still be too late for some small retailers he said. “At the current rate, that will mean another 1,000 small stores will have closed.”

Sir Christopher said he expects a decision from the OFT before next June. Failure to do so would leave the regulator open to further challenge.

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