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UK supermarkets set for shake-up | UK supermarkets set for shake-up |
(about 2 hours later) | |
Supermarkets may be forced to sell land to allow rivals to open in areas where there is not enough competition. | Supermarkets may be forced to sell land to allow rivals to open in areas where there is not enough competition. |
The measure is likely to be among the Competition Commission's suggestions to remedy problems it has identified in the UK's grocery market. | The measure is likely to be among the Competition Commission's suggestions to remedy problems it has identified in the UK's grocery market. |
There could also be a call for an ombudsman to protect food suppliers in any disputes with the big four supermarket chains. | There could also be a call for an ombudsman to protect food suppliers in any disputes with the big four supermarket chains. |
The regulator will release its long-awaited report at 1630 GMT. | The regulator will release its long-awaited report at 1630 GMT. |
According to market research group TNS Worldpanel, the UK's big four - Tesco, Asda, Sainsbury's and Morrisons - now account for more than three-quarters (76.2%) of the grocery market. | |
They stand to be most affected by any changes to the system. | They stand to be most affected by any changes to the system. |
See the supermarkets' share of the market | See the supermarkets' share of the market |
'Too few supermarkets' | 'Too few supermarkets' |
In October, the commission concluded that there were aspects of the grocery market that prevented or restricted competition. | |
A supermarkets ombudsman could protect suppliers | A supermarkets ombudsman could protect suppliers |
It said many people had too few large supermarkets to choose from in their local area which acted as a barrier to competition | It said many people had too few large supermarkets to choose from in their local area which acted as a barrier to competition |
The commission found, for example, that certain retailers hold on to land, which could prevent others from setting up shop nearby. | The commission found, for example, that certain retailers hold on to land, which could prevent others from setting up shop nearby. |
The commission is expected to recommend changes to the planning system to combat this problem. | The commission is expected to recommend changes to the planning system to combat this problem. |
These could involve a limit on the length of time supermarkets can keep undeveloped land and stopping supermarkets from imposing restrictive covenants on land to prevent competitors building on it. | These could involve a limit on the length of time supermarkets can keep undeveloped land and stopping supermarkets from imposing restrictive covenants on land to prevent competitors building on it. |
Retailers could even be forced to sell stores or land in areas where they are too powerful. | Retailers could even be forced to sell stores or land in areas where they are too powerful. |
The commission is also expected to call for a supermarkets ombudsman to protect suppliers in their dealings with the big chains. | The commission is also expected to call for a supermarkets ombudsman to protect suppliers in their dealings with the big chains. |
In October, the commission said it was concerned about retailers being able to transfer unexpected costs to their suppliers. | In October, the commission said it was concerned about retailers being able to transfer unexpected costs to their suppliers. |
Return to story | Return to story |