Convenience stores 'must push for ombudsman'

The ACS has urged the Government to create a regulator to help protect small stores from supermarket competition.

The Association of Convenience Stores called for the small business community to resist pressure from supermarkets to delay or weaken the realisation of the Competition Commission's Ombudsman proposal.

ASC chief executive James Lowman warned that this could make it easier for chains to build out-of-town supermarkets, drawing trade away from local shops.

The Competition Commission has proposed to bring in an ombudsman to oversee the relationship between supermarkets and suppliers, after its two-year inquiry into the grocery market.

However, major supermarket chains have said the move could push up prices for consumers.

Tesco chief executive Terry Leahy said the ombudsman could be "counter-productive and would reduce the benefits of competition," the Telegraph reported.

Asda's chief executive, Andy Bond, said the introduction of a regulator could hit consumers hard during the credit crunch and cost the industry "hundreds of millions, leading to higher prices for customers".