Supermarkets and small shop campaigners united in their criticism of the Competition Commission's groceries inquiry final report yesterday, with the big four claiming an ombudsman could increase prices and campaigners claiming the report had failed to protect independent retailers.
In its final report concluding its two-year investigation into the groceries market, the commission said it would recommend the creation of a new strengthened and extended Groceries Supply Code of Practice and to establish an independent ombudsman to oversee and enforce the code.
Both Tesco and Asda claimed an ombudsman could lead to higher food prices for shoppers.
“We welcome the broadening of the supplier code, but we share the concerns of panel member Professor Bruce Lyons that an ombudsman would be counter-productive and would reduce the benefits of competition,” said Tesco CEO Terry Leahy.
Asda CEO Andy Bond added: "The commission's proposals on the new code and an ombudsman could cost the industry hundreds of millions, leading to higher prices for customers which will hit families hard at a time when they are already feeling the pinch.”
Meanwhile, the Association of Convenience Stores and the Federation of Small Business hit out at the commission's finding that independent retailers could compete against the multiples.
“The overriding failing of this inquiry is that the commission views competition in the grocery market as competition between the big four retailers,” said ACS CEO James Lowman. “This approach ignores the critical need for a variety of retailers and supply chains. It is out of kilter with consumer trends towards more local shopping, and neglects the needs of many groups of consumers whose requirements are not properly met by the big four superstores.”
Clive Davenport, FSB trade & industry chairman, added: “The remit of this inquiry was far too narrow. Supermarkets are forcing small shops out of business in many areas of retailing, not just groceries.
In its final report concluding its two-year investigation into the groceries market, the commission said it would recommend the creation of a new strengthened and extended Groceries Supply Code of Practice and to establish an independent ombudsman to oversee and enforce the code.
Both Tesco and Asda claimed an ombudsman could lead to higher food prices for shoppers.
“We welcome the broadening of the supplier code, but we share the concerns of panel member Professor Bruce Lyons that an ombudsman would be counter-productive and would reduce the benefits of competition,” said Tesco CEO Terry Leahy.
Asda CEO Andy Bond added: "The commission's proposals on the new code and an ombudsman could cost the industry hundreds of millions, leading to higher prices for customers which will hit families hard at a time when they are already feeling the pinch.”
Meanwhile, the Association of Convenience Stores and the Federation of Small Business hit out at the commission's finding that independent retailers could compete against the multiples.
“The overriding failing of this inquiry is that the commission views competition in the grocery market as competition between the big four retailers,” said ACS CEO James Lowman. “This approach ignores the critical need for a variety of retailers and supply chains. It is out of kilter with consumer trends towards more local shopping, and neglects the needs of many groups of consumers whose requirements are not properly met by the big four superstores.”
Clive Davenport, FSB trade & industry chairman, added: “The remit of this inquiry was far too narrow. Supermarkets are forcing small shops out of business in many areas of retailing, not just groceries.
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