The other three retailers at the centre of the inquiry have welcomed its upcoming local focus.
“The commission appears to have made some progress on dispelling the myths surrounding our industry, particularly in their early work on suppliers,” said Tesco ceo Terry Leahy. “…However, I am concerned that consumers barely get a mention and I urge the commission to ensure that they are top of the list for the remainder of the inquiry.”
The boss of the UK’s market leader said he is confident about the eventual outcome of the full inquiry. “I am very confident that once they look at all of the evidence they will find, as they have in previous years, that our industry is competitive and good for consumers and will remain so in the future.”
Sainsbury’s and Asda - Tesco’s closest rivals in the UK - both welcomed the commission’s statement that the next part of its inquiry will have a distinctly local focus.
“Sainsbury’s shares the commission’s concern with ‘any one grocery retailer’s pre-eminent position, however acquired, becoming entrenched and incontestable by others,’” a spokesman for the chain said. “Our main concern is to ensure that this investigation helps consumers have access to a real choice of one-stop shops and secures a competitive market in the future at both a national and local level.”
Asda expressed a similar view and pointed out its strengths in supplier dealings. “Choice needs to play a role in whether planning consent is granted,” said a spokesman. “The unintended consequence of the present system is that it limits customer choice. We drive a hard bargain but treat suppliers with respect - we have long-term deals and pay a fair price.”
And Morrisons, the UK’s fourth retailer, said it believes the market is working well for consumers: “We believe the supermarket industry in the UK remains very competitive and generally works well for customers, although we share some of the commission’s concerns regarding competition at a local level.”
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