Ombudsman Leaves Small Grocers Feeling Vulnerable

Tue, 19 Feb 2008
 
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Owners of small grocers have responded to the controversial supermarket plans put forward by the Competition Commission last week by saying they will continue to remain vulnerable to the threat of supermarket dominance.

The introduction of an ombudsman to deal with complaints from farmers and other suppliers has been welcomed by the UK’s major supermarket groups, but the owners of smaller high street shops said the scheme failed to protect their businesses and interests .

The announcement of the plan follows a 21-month inquiry into Britain’s grocery industry that revealed little evidence of malpractice among supermarkets’ relationships with suppliers .

One farming industry source said: "There are farmers who have had problems with the supermarkets and have complained anonymously, but there were many others who are too frightened to come forward."

The new ombudsman will be able to hand fines to supermarkets that breach a strengthened Grocery Supply Code of Practice, but according to Bob Jarrett of the British Shops and Stores Association, smaller High Street stores have been left vulnerable.

"This investigation has addressed the issue of competition between the big supermarkets, but it hasn't examined how their growth is affecting High Street shops," he said.

The Competition Commission also announced it will seek to tighten planning regulations to help increase consumers’ supermarket choice in some parts of the country, with Tesco likely to be hit the hardest.

But, according to supermarket analyst Christopher Gower, the imminent rule changes may persuade the UK’s largest supermarket chain to "accelerate expansion plans in the short term".

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