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Press Release

Panorama supermarket claims misleading

22 December 2010

Claims about supermarket expansion, to be made on the BBC's Panorama are misleading said the British Retail Consortium (BRC).

In advance publicity, Panorama (to be broadcast tonight, Wednesday) claims one of the ‘Big Four' supermarkets gets planning permission for a new store ‘every working day of the year.' Programme trailers claim supermarkets are expanding faster than ever.

The BRC points out that there is nothing exceptional about the current rate of growth. Figures from retail research organisation Verdict show overall grocery retail floor space has grown slowly and consistently over the last ten years at between one and two per cent per year. The peak period for growth in superstore floor space was actually 2000/2001.

Panorama's figures for planning applications granted to the major food retailers are misleading because they make no distinction between small convenience stores and larger supermarkets. They also do not allow for stores that have closed.

Retail businesses use a lot of property and pay 25 per cent of all business rates. It is unsurprising they are responsible for a significant proportion of planning applications.

British Retail Consortium Director General Stephen Robertson said: "It's ridiculous to portray healthy business growth as something sinister.

"Supermarkets have grown, steadily and consistently over the years, because they offer convenience, range and attractive prices and customers choose to use them. All the power in retailing rests with customers. They determine whether stores succeed or fail.

"It's misleading to imply 250 additional supermarkets are being approved every year. The figures don't allow for store closures and many of the new shops are actually small convenience stores.

"In these difficult economic times we should be celebrating a business sector that is growing – there are precious few others that are.

"Supermarkets should be praised for the contribution the make to jobs, the economy and local communities including through the commitments asked of them by local councils as part of the planning process."



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British Retail Consortium

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