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Supermarket competition

ePolitix.com Stakeholders comment on the news that the Competition Commission has said that supermarkets, in general, are offering their customers a fair deal.

Party response: Liberal Democrat

Sarah Teather, business spokesperson, said: "The beefed-up supermarket code of conduct is welcome. But we will have to wait and see whether it really does stop the exploitation of suppliers.

"The key to whether new supermarkets are allowed in a particular area should not be about competition between different chains but about how large out-of-town supermarkets affect small high-street shops.

"At a time when land is at a premium, land banking by supermarket chains to stop competition is simply unacceptable."

Stakeholder response: British Retail Consortium (BRC)

British Retail Consortium

To send a comment to the BRC, click

Stephen Robertson, director general, said: "The Commission has again concluded that the UK's highly-competitive grocery market is benefiting customers. It is crucial that any new legislation does not damage customers by adding to costs and hampering the successful competition which, the Commission acknowledges, delivers value, choice, innovation and convenience."

On an ombudsman Stephen Robertson said: "This is unjustifiable pandering to supplier pressure groups. The Commission has not produced any evidence to show systematic failure in supermarkets' relationships with suppliers. Despite critics' claims, the Commission did not find suppliers in fear of retaliation.  

"With retailers battling to keep food prices down, this is entirely the wrong time to be thinking about introducing a pointless new multi-million pound quango which will ultimately be paid for by cash-strapped customers."

On an extended Supply Code of Practice Stephen Robertson said: "The voluntary supplier code, which is currently compulsory for the 'big four' supermarkets, remains a sensible attempt to set down what is and is not permissible behaviour, though it has been little used.

Robust negotiation is a healthy part of any business relationship. It helps deliver a good deal for customers. Any extended code must not introduce a legalistic process that works against customers' interests."

Published: Wed, 30 Apr 2008 17:19:23 GMT+01