Supermarkets face planning curbs under latest CC proposals
A “competition test” in planning decisions on large grocery stores is among today's proposals from the Competition Commission to remedy competition issues in the UK grocery market.
The fascia test should be introduced when local planning authorities are assessing planning applications for new large grocery stores, the CC says.
It proposes that the Office of Fair Trading would act as a statutory consultee to the local planning authority to carry out the test.
Further planning proposals include
• A requirement that grocery retailers release existing restrictive land covenants, which have the effect of preventing that land being used for competing stores, in areas of high concentration.
• A ban on the imposition of future restrictive covenants that restrict grocery retail use.
• A requirement on grocery retailers to lift existing exclusivity arrangements that have been in place for more than five years, where these have been identified as a barrier to entry by a competing retailer in areas of high concentration.
• A requirement on grocery retailers (and a recommendation to local authorities) not to enter into or enforce any exclusivity arrangements of this kind in the future for longer than five years.
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