Asda is urging the UK’s Competition Commission to change planning laws governing the opening of new stores in the country.
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Asda’s request comes as the UK grocery sector prepares for the publication of the Commission’s review into the sector this week.
The giant retailer is looking to build more stores on the edge of town centres and wrote to the Competition Commission to lobby for change to the regulations.
“It is increasingly clear that there are legitimate questions to be addressed about whether the mechanics of the permits-based planning regime have adverse unintended consequences resulting in social and economic costs that we are only now beginning to detect,” Asda said in a submission seen by just-food.
“And [there are] questions about whether these unintended consequences could be addressed through changes to the planning regime while maintaining a full commitment to our town centres policy.”
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By GlobalDataAsda has also cast questions about the so-called Need Test, a criteria used by planning authorities when approving the building of new stores. “The test only allows new retail space outside town centres where and to the extent there is ‘need’. This is estimated by planners in a given local area as the difference between assessed total demand and total supply.
“New space is only allowed to the extent there is assessed ‘headroom’ in the market. This exercise is conducted separately for comparison and convenience goods.”
In October last year, the Commission’s preliminary findings into the report found that competition must be improved in the UK grocery sector and suppliers need to be better protected. It cited a “lack of competition” in certain markets.
The “remedies statement”, the latest in the Commission’s review, is expected to be out this week. The final report is due to be published by 8 May.
