Summary
THE LONG-AWAITED Competition Commission report on the way supermarkets operate has been published. Its analysis is much less far-reaching than critics of the sector had hoped. But then, the really fundamental concerns about the domination of the supermarkets the so-called rise of "Tesco towns" was probably beyond the remit of the Commission. As matters stand, this, the fourth investigation into the sector since 1999, has concluded that supermarkets have done a reasonable job for consumers, although it criticises some of their policies, like operating "landbanks"and their dominance of local markets.
But the problem with the supermarkets is not that they over- charge consumers. No one doubts their mutual rivalry and purchasing power produce very competitive prices. What is worrying is the effect on other retailers, on high streets and on suppliers and the environment. As this paper's small shops campaign demonstrates, supermarkets can crush independent retailers. For example, they offer free parking, while small shops on the high street have to weather the parking restrictions imposed by councils. Yet the Commission actually says that in some areas there are too few supermarkets.See the full content of this document
Extract
The Commission Pulls Its Punches
It does suggest more should b...
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