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Tesco denies market stranglehold Tesco denies market stranglehold
(about 6 hours later)
Tesco has denied accusations that it has too much of a stranglehold over the UK grocery market.Tesco has denied accusations that it has too much of a stranglehold over the UK grocery market.
In an open report to the Competition Commission, the UK's largest supermarket said the body's definition of what constituted "local" was flawed.In an open report to the Competition Commission, the UK's largest supermarket said the body's definition of what constituted "local" was flawed.
As the commission examines whether the big supermarkets excessively dominate local shopping, Tesco said the term "local" needed to be redefined.As the commission examines whether the big supermarkets excessively dominate local shopping, Tesco said the term "local" needed to be redefined.
It said the body underestimated how far people drove to do their shopping.It said the body underestimated how far people drove to do their shopping.
Travel timeTravel time
At present, the commission defines local shopping as a person visiting a store that is up to 15 minutes' drive from his or her home.At present, the commission defines local shopping as a person visiting a store that is up to 15 minutes' drive from his or her home.
Tesco said this travel radius needed to be extended to 30 minutes or more.Tesco said this travel radius needed to be extended to 30 minutes or more.
And far from dominating the UK supermarket sector, it said that 98.6% of shoppers now had access, within 30 minutes drive, to stores run by all five of the largest supermarkets. And far from dominating the UK supermarket sector, it said that 98.6% of shoppers now had access, within 30 minutes' drive, to stores run by all five of the largest supermarkets.
Tesco added that the grocery market was now "national" rather than local, both because people were willing to drive further to their supermarket of choice, but also because of the growth in people doing their food shopping online.Tesco added that the grocery market was now "national" rather than local, both because people were willing to drive further to their supermarket of choice, but also because of the growth in people doing their food shopping online.
Tesco drew its conclusions from a research tool which it says can identify the habits of marginal shoppers.Tesco drew its conclusions from a research tool which it says can identify the habits of marginal shoppers.
The Competition Commission is looking into whether Tesco, Sainsbury's, Asda and Morrisons - which control almost 75% of the UK market - are abusing their position by limiting consumer choice.The Competition Commission is looking into whether Tesco, Sainsbury's, Asda and Morrisons - which control almost 75% of the UK market - are abusing their position by limiting consumer choice.
Firms found to have an anti-competitive hold on the market may be forced to sell off stores.Firms found to have an anti-competitive hold on the market may be forced to sell off stores.