Retailers are accepting the announcement of an investigation of their sector by the Competition Commission stoically.
Asda hopes the CC will focus on planning issues while Tesco believes the probe will show its activities have benefitted consumers. “While we thought a Competition Commission referral was unnecessary, we're pleased that the OFT report highlighted planning is a real concern,” said an Asda spokesman.
“Many of the concerns raised by interested parties are ones we share. For instance there are dozens of towns up and down the country that have relatively little choice - they are only served by one or two supermarkets. To drive more competition we believe these towns would benefit by having an Asda.”
“In our view, the planning regime needs to be improved - so that choice plays a role in whether planning consent is granted - the unintended consequence of the present system is that it limits customer choice.”
British Retail Consortium director general Kevin Hawkins said the announcement was expected: “It’s no surprise that the Competition Commission has been given a blank cheque to investigate the entire sector. These issues have been scrutinised thoroughly in recent years but the OFT obviously believes that the grocery market is changing rapidly enough to warrant another wide-ranging investigation.
“It may choose to focus more specifically on areas such as planning and the convenience market which, arguably, have a higher profile than was the case in the late 1990s.
Tesco issued a statement saying that the OFT's decision to refer the grocery sector “is not unexpected”.
“The OFT said that it has concluded that overall, consumers have benefited from falling prices, an increase in product range and quality and improved service. Tesco is confident the Competition Commission will endorse this view.”
It could take up to two years for the commission investigation to be completed.
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