Research Shows Half Of New Retail Space Occupied By Tesco

Wed, 03 Jan 2007
 
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The UK’s leading supermarket chain, Tesco, is in the middle of yet another heated situation, as rival companies have been having reacting in anger on Tesco’s continued ‘out of control’ growth.

Research firm Verdict has found that the group opened half of all the new retail selling space in Britain (2million square feet of shopping space out of 4million) in 2006.

The news came after Tesco had already announced that price reductions on a total of 600 items, a saving of £80 million.

Asda, Britain's number two in the supermarket industry, called the figures 'staggering.'

Smaller firms are calling on the regulator to stop the country from being taken over by grocery outlets.

Spokeswoman for Asda, Jennifer England, said local councils should have to consider the need for greater competition when deciding planning applications.

"There is a massive gulf between us and Tesco. It's quite staggering. That's why this competition issue is so important," she said.

Verdict's Richard Hyman said, "Tesco is by far the strongest, most successful and best retailer in Britain, so it's not surprising that they would be growing the fastest. Penalising the firm would dilute the positive economic impact Tesco has."

Tesco had their say on the issue, maintaining that the company is also very successful in getting new retail space because it is more flexible and innovative.

Tesco's additional space in 2006 was its largest since 2003/4 when it opened 1.8million sq ft of new space.

It also adds that 650,000 sq ft of last year’s two million sq ft was from extensions to existing stores.

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