Tesco faces Slough sell-off to competitor

The Competition Commission has ruled that Tesco will be required to divest the site, after concluding that that the acquisition reduced competition and choice in the grocery market.

The commission said its preferred solution is for another grocery retailer to buy the former Co-op site and develop a large enough store to compete effectively with the other large grocery stores in Slough, and especially with the large Tesco store at nearby Brunel Way.

In its report, the competition watchdog noted that a competing grocery retailer would face a number of drawbacks operating from the Tesco redevelopment, which would affect its ability to compete in Slough and in particular with Tesco's Brunel Way store.

During its inquiry earlier in the year, the commission ordered Tesco to suspend work on the ongoing retail redevelopment on the former Co-op site.

Peter Freeman, inquiry group chairman, said the aim is to see a large store on the former Co-op site fully equipped to compete with Tesco's existing store on Brunel Way.