1. News
February 17, 2020

Tesco warned by UK CMA not to block rival store openings

The UK Competition and Markets Authority (CMA) has told supermarket chain Tesco to refrain from blocking rivals supermarkets from opening stores.

The UK Competition and Markets Authority (CMA) has told supermarket chain Tesco to refrain from blocking rivals supermarkets from opening stores.

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The illegal practice of stopping rivals from opening near its stores was discovered by CMA during monitoring in 2018.

It was found that Tesco prevented landlords from letting property to competitors for grocery retailing in the future.

The move is deemed illegal under the Groceries Market Investigation (Controlled Land) Order 2010.

This discovery by CMA led to a review of all of Tesco’s 5,354 land agreements, where a total of 23 breaches were uncovered, including three restrictive covenants.

CMA Markets and Mergers executive director Andrea Gomes da Silva said: “It’s unacceptable that Tesco had these unlawful restrictions in place for up to a decade. By making it harder for other supermarkets to open stores next to its branches, shoppers could have lost out.

“In the future, we want the ability to fine businesses if we find that they are in breach of our orders. That’s why we’ve called on the government for more powers.”

Tesco has agreed to improve its management and staff training to avoid future breaches. It also guaranteed to develop new land agreements that comply with the order.

Meanwhile, the regulator will follow Tesco’s progress on the issue and take formal enforcement action if further breaches are found.

In relation to this development, the CMA has also written to other supermarkets bound by the order to show their land agreements. The retailers include Waitrose, Sainsbury’s, Asda, Morrisons, M&S and the Co-op.

Earlier this year, Tesco was reported to face close scrutiny from a competition regulator in Thailand over the sale of its operations in the country.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.