OFT tells Tesco to sell

The Office of Fair Trading has threatened to refer Tesco’s acquistion of a former Co-op store in Slough to the Competition Commission, unless the supermarket chain sells the shop.

Tesco already has a supermarket in Slough and plans to redevelop the site. It bought the second store to ensure no loss of trade during the redevelopment.

Penny Boys, executive director of the OFT, said: “Local consumer complaints prompted our investigation in this case.” Boys argued that the purchase reduces the limited number of competing one-stop shops in this area. “Tesco’s proposed undertaking to sell this store would address these concerns in a clear-cut manner.”

A Tesco spokesman said: “We will happy talk to the OFT with a view to satisfying their request for undertakings to avoid a referral. We have made it clear we do not intend to have two stores trading side by side long-term.”