The UK high street has hit back at retailer Tesco’s sixth Corporate Responsibility Review, which states that an investment by Tesco in a town or high street will “benefit” the area.

In its report, Tesco identifies Downham Market in Norfolk and Ludlow in Shropshire as locations where “Tesco stores have been demonstrably good for the high street and neighbourhoods”.

However, local retailers in these areas claim that the arrival of Tesco has detracted from consumer choice and several have spoken up about the problem, according to the Association of Convenience Stores (ACS).

Independent retailer Nigel Dowdney owns a shop in Norfolk, near Downham Market, and told the ACS he has felt threatened by Tesco.

“The detrimental effect that Tesco had on the town centre was apparent immediately,” he said. “Within weeks of the actual opening, the local Co-op closed and then a variety of food and non-food shops started to disappear, many of whom had operated in the town for decades. The latest business to cease trading, last month, has operated in the town for the last 43 years.

“We have proven a reduction in footfall in Stalham town centre in excess of 55 per cent overall, and in some parts of the town up to 90 per cent, since Tesco opened. I no longer believe their corporate statements and would say that it is far safer not to,” he added.

The ACS also cites the case of Harry Tuffins supermarkets, which opened a new 3,000 sqft forecourt convenience store in Ludlow on January 19. To coincide with the opening, Tuffins offered 10p off a litre of petrol for every £60 spent in store. Tesco then launched a similar offer at the same time, proposing £10 off any shopping over £30.

Harry Tuffins managing director Paul Delves said: “Tesco can sometimes help to regenerate town centres, as it did originally in Ludlow, but I think the debate should now be about the possible sheer domination of them in areas which are perfectly well served already.”

ACS chief executive James Lowman said: “In their latest review, Tesco claims to be a community-friendly retailer working to benefit local people, yet the reality of both case studies is very different. These are examples of excellent retailers competing with the multiples but facing unfair competition, now due to any failings in their stores, products or services, but as a direct result of the aggressive strategies of this dominant national supermarket.

The row comes as the Competition Commission inquiry into the UK’s grocery market examines the effect of the ‘Big Four’ on local markets.

“The Competition Commission should not be taken in by these very general statements. They need to look at the evidence on the ground and the effects that superstore development can have on consumer choice,” added Lowman.

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