Leaked preliminary findings of a report due for publication in February warn that independent retailers will be almost non-existent by 2015.

The report by a 150-MP all-party parliamentary small shops committee - High Street Britain 2015 - is expected to conclude that wholesalers and independent retailers will be almost completely squeezed out by supermarkets in a decade’s time. It warns that unless reined in, Tesco, Asda, Sainsbury’s and Morrisons will have between them “dramatically altered” the grocery sector.

The threat is firstly to wholesalers because of supermarkets’ significant buying power which will have a knock-on effect on retailers. The multiples also come in for criticism for creating “food deserts” on the High Street as they build out of town. The implications is that this will have a significant negative impact on the diet and health of low-income and elderly sections of the population.

Tesco has hit back, pointing to the success of franchise operations such as Londis as proof that the independent sector is thriving.

Topics