Federation of Small Businesses - Competition Commission lets supermarkets off the hook again

The Federation of Small Businesses (FSB) has reacted with disappointment to the Competition Commission’s provisional findings in the grocery sector, which failed to acknowledge the adverse impact of the supermarkets on independent retailers.

The UK’s biggest business organisation said that the competitive advantage enjoyed by out of town supermarkets over independent retailers from free parking, the unfair treatment of suppliers and below-cost selling has not been sufficiently addressed.

The FSB strongly disputes the Competition Commission’s conclusion that the decline of convenience and specialist store numbers is insignificant.

Clive Davenport, FSB Trade and Industry Chairman, said:

“The Competition Commission’s report seems to recognise problems such as below-cost selling and the shoddy treatment of suppliers, but claims that small independent retailers are not affected. This is absurd.

“Small independent retailers are closing at a rate of 2000 per year and you’ve only got to walk down your local high street to see the evidence of this.

“The suggestion that, to increase competition, the planning system should be relaxed to allow more supermarkets to be built is perverse.

“Consumers deserve more than a choice between four supermarkets selling the same products. The specialist retailers and independent stores that offer consumers real alternatives are suffering from the anti-competitive practices of the supermarkets. The Competition Commission’s latest report does nothing to address this.”

ENDS

Notes to Editors:

1. Details of the Competition Commission decision can be found at http://www.competition-commission.gov.uk/inquiries/ref2006/grocery/provisional_findings.htm.

2. High Street Britain 2015, a report by the All-Party Parliamentary Small Shops Group, found that independent shops are closing at a rate of 2000 per year. More details can be found at http://www.nfsp.org.uk/uploads/pdfs/High%20Street%20Britain%202015%20report.pdf.

3. The FSB in Scotland’s investigation into the effect of supermarkets on independent retailers can be found at http://www.fsb.org.uk/policy/rpu/scotland/images/FSB_Scotland_Independent_Supermarket_Report.pdf.

4. Small businesses employ 58% of the private sector workforce, contribute over 50% of UK GDP and make up more than 99% of all UK businesses.

5. The FSB is Britain's biggest business organisation with over 210,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.