New plans to ensue competition in Britain’s grocery sector by curbing local dominance by individual supermarkets are set to be unveiled this week by the Competition Commission .
The industry watchdog is close to concluding its two-year probe into the £95 billion grocery sector, with Chairman Peter Freeman keen to prevent further development by a retailer that already holds a strong local presence.
Mr Freeman is expected to reveal details of a new competition test where planners will have to consider a supermarket’s market share and the number of rivals competing in the area when handling an application for planning permission, instead of just granting consent to the highest bidder.
The commission’s provisional findings, announced in October, revealed there were features of the market that prevented, restricted or distorted competition.
“A lack of competition in certain local markets not only disadvantages consumers in those areas but also allows retailers to weaken their offer to consumers nationally,” it said.
The decision is being closely monitored by the largest supermarket groups, which could be profoundly affected by any changes to the system .
Mr Freeman is also set to detail the regulations of a new ombudsman to supervise the relationship between the big four supermarket chains – Tesco, Asda, Sainsbury’s and Morrisons – along with their suppliers .
The move follows claims that suppliers are feeling the strain of promotional price-cutting schemes by supermarkets .
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