The imminent announcement from the Competition Commission on the groceries market could spell disaster for the diversity of local shops and their communities, if initial reports are accurate.

This is the view of the Campaign to Protect Rural England [1] (CPRE) as it awaits the Competition Commission’s announcement later today (Friday).

‘A narrow obsession with competition between a few giant retailers who offer a very similar quality of product and service will do very little for everyone’s quality of life.[2] We do not live by discount alone: variety matters too. Local independent businesses could be crushed and the diversity leached from our farmed landscapes. A new assault on the individual character of town centres is quite possible’ [3] said Tom Oliver, Head of Rural Policy at CPRE.

In an effort to limit domination by a single supermarket chain, the Commission’s proposals may make it easier for the biggest retailers to compete with one another, while excluding other businesses from a share in the market.

What’s more, farmers and growers could be left with even fewer options when it comes to finding a market. This would be particularly perverse if the Competition Commission also proposes a new supermarket ombudsman [4] to monitor aggressive supermarket buying practices.

‘The proposed ombudsman would be far busier if the Commission’s pro-supermarket views are taken seriously by the Government. The big retailers will need to put a tighter squeeze on their suppliers in a yet more ruthless market. This would be a sticking plaster for a wound of the Commission’s own making,’ Tom Oliver continued.

‘The sound policies which are now in place, testing the need for supermarkets and strongly encouraging town centre location of more modest sized stores need to be retained.[5] The Competition Commission could be playing into the hands of big business and letting everyone else down in a spectacular way,’ Tom Oliver concluded.

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NOTES FOR EDITORS

1. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Bill Bryson. Patron: Her Majesty The Queen. http://cpre.org.uk

2. It has been reported that the Competition Commission may make recommendations that where a single supermarket is dominant in a local market, the planning regime may be altered to encourage the granting of permission to other large supermarket businesses.

3. A further expansion of large scale supermarket premises is likely to put pressure on the economic viability of smaller grocery businesses in the same towns. Towns derive much of their individual character from retail businesses which are not found across the whole country.

4. It has been reported that the Competition Commission may recommend the establishment of an ombudsman or adjudicator to monitor supermarket buying practices and relationships with suppliers.

5. At present, a ‘need’ test and a sequential test for the siting and scale of new retail development are key parts of Government town centre planning policy (PPS6).