15th February 2008
Blow for small shops in supermarket shake-up
Local shops could suffer if plans to force supermarkets to sell land to rivals go ahead, campaigners said today.
The backlash comes ahead of the Competition Commission's publication of a two-year investigation into the grocery sector.
Today's report is expected to set out details of a new test in which a supermarket's market share would be considered before being given planning permission. Chains that hold land specifically to block other retailers from opening may be forced to sell up.
According to market research group TNS Worldpanel, the UK's big four - Tesco, Asda, Sainsbury's and Morrisons - account for 76.2% of the grocery market.
Campaigners for local shops and businesses said the findings did not respect or encourage choice. "Supermarkets do a fantastic job of convincing us they're cheaper when often they're not," said Diana Bird, founder of Wedge, an award card scheme for local shops.
"Small retailers not only offer a tremendous choice but they are hubs of the community," she added.
Luke Herbert, head of UK public policy at the Royal Institution of Chartered Surveyors, said that "real competition comes from promoting a range of choices from large supermarkets to smaller shops not just by encouraging the big chains to face off against each other",
A spokesperson for the department for Communities and Local Government told More Than Business News that it would take the paper into account. "We'll look at the recommendations, but we are totally committed to preserving the vitality of town centres."
"That's why we are introducing a 'tougher impact test'. This means that councils can refuse any application that has a negative impact on the high street."
Independent grocery stores numbers have dwindled to 2.5% of the market in 2008 compared with 5.7% in 1998.
The backlash comes ahead of the Competition Commission's publication of a two-year investigation into the grocery sector.
Today's report is expected to set out details of a new test in which a supermarket's market share would be considered before being given planning permission. Chains that hold land specifically to block other retailers from opening may be forced to sell up.
According to market research group TNS Worldpanel, the UK's big four - Tesco, Asda, Sainsbury's and Morrisons - account for 76.2% of the grocery market.
Campaigners for local shops and businesses said the findings did not respect or encourage choice. "Supermarkets do a fantastic job of convincing us they're cheaper when often they're not," said Diana Bird, founder of Wedge, an award card scheme for local shops.
"Small retailers not only offer a tremendous choice but they are hubs of the community," she added.
Luke Herbert, head of UK public policy at the Royal Institution of Chartered Surveyors, said that "real competition comes from promoting a range of choices from large supermarkets to smaller shops not just by encouraging the big chains to face off against each other",
A spokesperson for the department for Communities and Local Government told More Than Business News that it would take the paper into account. "We'll look at the recommendations, but we are totally committed to preserving the vitality of town centres."
"That's why we are introducing a 'tougher impact test'. This means that councils can refuse any application that has a negative impact on the high street."
Independent grocery stores numbers have dwindled to 2.5% of the market in 2008 compared with 5.7% in 1998.
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