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Probe says 'too few supermarkets' Probe says 'too few supermarkets'
(20 minutes later)
A revamp of the planning system to allow greater competition between UK supermarkets has been called for by the Competition Commission.A revamp of the planning system to allow greater competition between UK supermarkets has been called for by the Competition Commission.
In its preliminary report it suggests forcing supermarkets to sell land they own in areas where there are not enough different chains of retailers.In its preliminary report it suggests forcing supermarkets to sell land they own in areas where there are not enough different chains of retailers.
But the report said that in most areas the UK groceries market was delivering "a good deal for consumers".But the report said that in most areas the UK groceries market was delivering "a good deal for consumers".
The commission also called for further measures to protect suppliers.The commission also called for further measures to protect suppliers.
Encouraging complaintsEncouraging complaints
The report said it was concerned about retailers being able to transfer unexpected costs to their suppliers.The report said it was concerned about retailers being able to transfer unexpected costs to their suppliers.
The commission will consult retailers and suppliers about how best to deal with this problem.The commission will consult retailers and suppliers about how best to deal with this problem.
There is already a code of practice for the treatment of suppliers, which was set up after the commission's last report on the sector in 2000.There is already a code of practice for the treatment of suppliers, which was set up after the commission's last report on the sector in 2000.
One question is whether suppliers need to be encouraged to complain about their treatment by retailers and how to go about doing so, perhaps by offering them anonymity.One question is whether suppliers need to be encouraged to complain about their treatment by retailers and how to go about doing so, perhaps by offering them anonymity.
Planning changesPlanning changes
The commission found that consumers have good choice between retailers in most areas, "but in a number of local areas more competition would benefit consumers". Check Tesco's shares Check Sainsbury's shares Check Wm Morrison's sharesThe commission found that consumers have good choice between retailers in most areas, "but in a number of local areas more competition would benefit consumers". Check Tesco's shares Check Sainsbury's shares Check Wm Morrison's shares
It suggests introducing a competition test into the planning process that will allow the position of existing supermarkets to be taken into account.It suggests introducing a competition test into the planning process that will allow the position of existing supermarkets to be taken into account.
It is also considering rules to stop retailers using restrictive covenants when they sell land that make it less likely that rival shops can be built there.
It may also decide that any land owned by supermarkets must be sold if it is not developed within a certain amount of time.
Such measures would be designed to deal with allegations of "land-banking", which is the practice of buying up land near a store to prevent a competitor being able to open an outlet nearby.
The report from the Competition Commission is not final.The report from the Competition Commission is not final.
Supermarkets will have the opportunity to respond to its findings before the final recommendations are published in March 2008.Supermarkets will have the opportunity to respond to its findings before the final recommendations are published in March 2008.