US giant Wal-Mart is calling on the UK government to launch an investigation into Tesco’s domination of the supermarket sector.
The world’s largest retailer, and parent company of Asda, is gunning for the UK’s number one. It told the Sunday Times that a probe is vital now that Tesco’s market share has hit 30.5 per cent.
However, Tesco claimed the 30.5 per cent figure, based on TNS figures, was “misleading”.
Wal-Mart made the call as Asda announced a fresh round of price cuts to the tune of £130 million.
Wal-Mart boss Lee Scott said the authorities had to investigate Tesco's continuing domination because it was so difficult for rivals to try to catch up.
“As you get over 30 per cent and higher, I am sure there is a point where government is compelled to intervene, particular in the UK, where you have the planning laws that make it difficult to compete,” he said.
However, Tesco said the market share claim was misleading because it did not factor in food sales from Marks & Spencer and other department stores.
It said that when these were taken into account, its share of the overall UK food market was just 16.7 per cent, and added it was acting in the best interest of shoppers.
Asda is introducing its price cuts as part of its 40th anniversary celebrations.
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