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Supermarket powers to be curbed | Supermarket powers to be curbed |
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Suppliers will get better protection in their dealings with big supermarkets to ensure fair competition. | Suppliers will get better protection in their dealings with big supermarkets to ensure fair competition. |
An ombudsman will be appointed to resolve any disputes between retailers and their food suppliers, the Competition Commission recommends. | An ombudsman will be appointed to resolve any disputes between retailers and their food suppliers, the Competition Commission recommends. |
They will have the power to award compensation and will uphold a tougher supermarket code of practice (SCOP). | They will have the power to award compensation and will uphold a tougher supermarket code of practice (SCOP). |
Proposed changes to the planning law could also give shoppers a wider choice of supermarkets in their local areas. | Proposed changes to the planning law could also give shoppers a wider choice of supermarkets in their local areas. |
The proposals come after a two-year investigation into the UK's supermarket sector, which is dominated by four major chains - Tesco, Asda, Sainsbury's, and Morrisons. | The proposals come after a two-year investigation into the UK's supermarket sector, which is dominated by four major chains - Tesco, Asda, Sainsbury's, and Morrisons. |
Planning changes | Planning changes |
The changes could help farmers and consumers, but does little to ease the plight of small shopkeepers on the High Street. | The changes could help farmers and consumers, but does little to ease the plight of small shopkeepers on the High Street. |
Shake-up at a glanceReactions to report | |
The plan includes measures to stop retailers imposing restrictions on who can build on land they sell off. | The plan includes measures to stop retailers imposing restrictions on who can build on land they sell off. |
There is also a five-year time limit on the agreements between supermarkets and local authorities that prevent rivals setting up shop nearby. | There is also a five-year time limit on the agreements between supermarkets and local authorities that prevent rivals setting up shop nearby. |
However, the plans do not require supermarkets to sell land or stores. | However, the plans do not require supermarkets to sell land or stores. |
Tougher code | Tougher code |
The SCOP, which sets out how supermarkets should treat their suppliers, was created in response to the Competition Commission's last major investigation into the grocery sector in 2000. | The SCOP, which sets out how supermarkets should treat their suppliers, was created in response to the Competition Commission's last major investigation into the grocery sector in 2000. |
A new version will be created which includes all grocery retailers with turnover greater than £1bn. | A new version will be created which includes all grocery retailers with turnover greater than £1bn. |
Supermarkets will have to employ compliance officers to make sure the code is followed. | Supermarkets will have to employ compliance officers to make sure the code is followed. |
The new code will protect suppliers from supermarkets changing the terms of agreed supply contracts. | The new code will protect suppliers from supermarkets changing the terms of agreed supply contracts. |
Often, even after a farmer had agreed to a contract price with a supermarket, if the store decided to buy produce, he would be forced to accepted a lower unit price. | Often, even after a farmer had agreed to a contract price with a supermarket, if the store decided to buy produce, he would be forced to accepted a lower unit price. |
Interested parties now have a fortnight to comment on these recommendations before the final report is published in April. | Interested parties now have a fortnight to comment on these recommendations before the final report is published in April. |
'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. |
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 also said it was concerned about retailers being able to transfer unexpected costs to their suppliers. | The commission also said it was concerned about retailers being able to transfer unexpected costs to their suppliers. |