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| UK supermarkets set for shake-up | UK supermarkets set for shake-up |
| (30 minutes 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 latest report at 1630 GMT. | The regulator will release its latest report at 1630 GMT. |
| See the supermarkets' share of the market | See the supermarkets' share of the market |
| In its initial report in October, the commission said it was concerned about retailers being able to transfer unexpected costs to their suppliers. | In its initial report in October, the commission said it was concerned about retailers being able to transfer unexpected costs to their suppliers. |
| The net effect may be viewed as reinforcing a status quo in which Tesco has double the market share of its nearest rivals Robert Peston, Business editor, BBC News Read Robert Peston's blog class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=4302&edition=1">Send us your comments | |
| One solution may be to create a supermarkets ombudsman to protect suppliers in their dealings with the big chains, but there has been some doubt about how effective a measure that would be. | One solution may be to create a supermarkets ombudsman to protect suppliers in their dealings with the big chains, but there has been some doubt about how effective a measure that would be. |
| "The Competition Commission needs to be seen to be doing something and this could be a sop to suppliers," said Julian Wild from Rollitts Solicitors, who represents food companies in their dealings with supermarkets. | "The Competition Commission needs to be seen to be doing something and this could be a sop to suppliers," said Julian Wild from Rollitts Solicitors, who represents food companies in their dealings with supermarkets. |
| "It's hard to see that it's going to have a major impact," he added. | "It's hard to see that it's going to have a major impact," he added. |
| 'Too few supermarkets' | 'Too few supermarkets' |
| 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. | 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. |
| In October, the commission concluded that there were aspects of the grocery market that prevented or restricted competition. | In October, the commission concluded that there were aspects of the grocery market that prevented or restricted competition. |
| A LONG INVESTIGATION March 2005 - OFT finds supermarkets are sticking to their code of practiceNovember 2005 - Competition Appeal Tribunal tells OFT to reconsiderMarch 2006 - OFT begins consultationMay 2006 - OFT refers grocery market to Competition CommissionOctober 2007 - OFT publishes preliminary reportFebruary 2008 - Competition Commission publishes provisional recommendationsMay 2008 - Deadline for final report | A LONG INVESTIGATION March 2005 - OFT finds supermarkets are sticking to their code of practiceNovember 2005 - Competition Appeal Tribunal tells OFT to reconsiderMarch 2006 - OFT begins consultationMay 2006 - OFT refers grocery market to Competition CommissionOctober 2007 - OFT publishes preliminary reportFebruary 2008 - Competition Commission publishes provisional recommendationsMay 2008 - Deadline for final report |
| 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. |
| Return to story | Return to story |