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23.01.07

‘The Competition Commission’s inquiry is now entering a critical period. We want its final report to stem the remorseless growth of superstores and the big retailers that dominate our food shopping and to support remedies that offer a real choice of shops with accessible, affordable local food for local communities.’

This was the reaction of CPRE’s [1] rural policy campaigner Graeme Willis today (Tuesday) to the Competition Commission’s ‘emerging thinking’ from its UK groceries market investigation. [2]

While the Commission is set to focus on local markets, it has little to say so far about Tesco and Sainsbury moving into the convenience sector or the continuing loss of local independent stores. On their own analysis 2,400 have disappeared since 2000. [3]

The commission’s analysis of market structure also misses a vital point: while considering the choice of large grocery outlets (above 1,400 square metres) within 10 or 15 minutes drivetime [4] of shoppers, it says nothing about those wanting to or having to shop on foot, bicycle or public transport.

Superstores do little to improve access for the elderly or disadvantaged or the carbon conscious among us. Nor do they do much for rural populations losing their local village store as superstores increase their market share.

There are useful findings on the planning system in today’s ‘emerging thinking’ report. According to the Commission there is little to show that it is acting as a barrier to entry into the market or to hold back competition.

It suggests that the ‘sequential test’ in planning – prioritising town centre locations for retail development – and the ‘needs test’ – assessing the requirement for additional retail floorspace – are not ‘constraining the building of larger supermarkets’ [5]. This provides welcome support for retaining both tests to maintain a strong planning system which can bring together environmental, social and economic concerns in decisions that work for the whole community.

Graeme Willis concluded:

‘There’s still a long a way to go. We want the Competition Commission to have the courage to bring forward proposals to support local businesses – farmers, suppliers and local stores alike – wrestling with the huge buying power, supply chains and distribution systems of the big supermarkets.

‘Opening up sites for more superstores is definitely not the answer. It will do little to make shopping easier without a car, or to make fresh local food available at affordable prices or to stem the rapid decline of independent stores. And it will do nothing to keep our high streets and towns interesting, varied places to shop.’

NOTES FOR EDITORS

1. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Sir Max Hastings. Patron: Her Majesty The Queen. CPRE published The Real Choice: How local foods can survive the supermarket onslaught by Caroline Cranbrook and CPRE in June 2006.
2. The Competition Commission published its emerging thinking on its investigation into the grocery market today (Tuesday 23 January).
3. Groceries Market Investigation Emerging Thinking report, p17 http://www.competition-commission.org.uk/inquiries/ref2006/grocery/pdf/emerging_thinking.pdf
4. Groceries Market Investigation Emerging Thinking report, p8.
5. Groceries Market Investigation Emerging Thinking report, p55.

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