According to the former director's reported claims the stores are not competing on the most popular products, effectively operating a cartel.

The revelation comes following a government investigation last year, which found that there was no evidence to substantiate cartel claims from producer groups, or unfair treatment of suppliers, although UK supermarket prices were often found to be higher than elsewhere in Europe and in the US.

The source also alleges that staff move between stores helping to perpetuate the 'understanding.' Sainsbury's has reportedly denied the claims, while a Tesco spokesperson reportedly said the store monitors prices all the time.

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