The Live Wire



Press Release

Competition Commission lets supermarkets off the hook again

31 October 2007

The Federation of Small Businesses (FSB) has reacted with disappointment to the Competition Commission’s provisional findings in the grocery sector, which failed to acknowledge the adverse impact of the supermarkets on independent retailers.

The UK’s biggest business organisation said that the competitive advantage enjoyed by out of town supermarkets over independent retailers from free parking, the unfair treatment of suppliers and below-cost selling has not been sufficiently addressed.

The FSB strongly disputes the Competition Commission’s conclusion that the decline of convenience and specialist store numbers is insignificant.

Clive Davenport, FSB Trade and Industry Chairman, said:

“The Competition Commission’s report seems to recognise problems such as below-cost selling and the shoddy treatment of suppliers, but claims that small independent retailers are not affected. This is absurd.

“Small independent retailers are closing at a rate of 2000 per year and you’ve only got to walk down your local high street to see the evidence of this.

“The suggestion that, to increase competition, the planning system should be relaxed to allow more supermarkets to be built is perverse.

“Consumers deserve more than a choice between four supermarkets selling the same products. The specialist retailers and independent stores that offer consumers real alternatives are suffering from the anti-competitive practices of the supermarkets. The Competition Commission’s latest report does nothing to address this.”



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Federation of Small Businesses

Federation of Small Businesses

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