What areas did the OFT examine?
The OFT looked at two main issues – competition worries surrounding the local convenience stores market and whether supermarkets are abusing their relationships with suppliers. Last year, the OFT ruled that the grocery market was not restrictive, prompting widespread derision from local shops and action groups. The OFT also ruled that there was no need to reform the way the supermarkets deal with suppliers, despite claims that the “big four” had engaged in “bullying tactics”. However, in its latest statement, the OFT now says there is “some evidence to suggest that the big supermarkets’ buyer power has increased”. Why are people worried about the convenience stores sector? Local, or corner, shops are becoming a huge growth area for supermarkets. As the big four – Tesco, Asda, Sainsbury and Morrison’s – face greater planning restrictions, one of the key ways they can expand their business is by targeting the convenience store format. Tesco plans to change many petrol stations to its Exp
