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30 Apr 2008

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Scottish shopkeepers sceptical over competition measures

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The measures put forward by the Competition Commission today are unlikely to loosen the stranglehold of national food chains over the grocery market, say small retailers in Scotland.

Although it welcomed the introduction of a competition test and ombudsman, the Scottish Grocers Federation (SGF) said the commission could have done more to promote a more diverse retail offering.

The SGF was concerned that the competition test “does nothing to prevent a grocery chain opening smaller stores”.

It said the test would have been more effective if it had included developments under 1000sq metres.

The SGF also questioned how effective an ombudsman would be if it has limited powers to investigate the grocery market.

SGF chief executive John Drummond said: “Planning is a devolved matter and SGF look forward to meeting with officials from the Scottish Government in the near future to discuss the outcomes of the inquiry and in particular the competition test.

“There is a need for an ombudsman, however they must have the power to undertake proactive investigations into irregularities within the grocery market, in order to ensure a level playing field.

“What is required is a plan of action to promote sustainable and diverse retailing with a healthy mix of large and small stores, offering genuine choice which is not dominated by multiple supermarkets. SGF will continue to work with politicians and officials to ensure this becomes a reality.”

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