The UK’s competition watchdog today (2 October) repeated its desire for stronger checks on supermarket expansion – but has tweaked its proposals.
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The Competition Commission has “formally” recommended that local UK government officials introduce a “competition test” in ruling on planning applications from retailers.
However, the Commission said it had “modified” the test to allow retailers to make “small extensions” of up to 300 sq metres per store – if the outlet had not been expanded in the previous five years.
The Competition Appeal Tribunal had asked the Commission to revisit its plans after opposition from Tesco, the UK’s largest food retailer.
Tesco had fiercely opposed the introduction of the test on the grounds that older stores could not be updated and provide a “better offer” for customers
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By GlobalData“We were asked to look at the case again by the tribunal and we believe we have shown the test will be effective, beneficial to consumers and proportionate,” Commission chairman Peter Freeman said.
“We expect that the competition test will have the effect we intend by helping to bring in competition where it is lacking and to stop individual retailers consolidating strong positions in local areas to the detriment of consumers.”
