ACS calls for probe into Jacksons acquisition
C-store association seeks to halt supermarket expansion
The Association of Convenience Stores (ACS) wants the UK Office of Fair Trading to investigate Sainsbury’s acquisition of the Jacksons chain.
The ACS belives the government’s decision to treat the supermarket and convenience sectors as separate markets puts independent retailers at risk. As a result, both Sainsbury’s and market leader Tesco have been able to grow their presence in the convenience market through a series of high profile acquisitions.
ACS has repeated calls for the government to introduce safeguards for the grocery sector in the light of Sainsbury’s acquisition of the 114-store Jacksons business this week.
ACS chief executive David Rae said: “The implications of this latest acquisition by a major multiple retailer will be felt widely and acutely in our sector. We must fight for fairness in our industry together, and I urge all independents to join us now to help our campaign for balance and true competition in the sector.
“This acquisition should be seen as part of a process of ongoing consolidation and the continued entry into the convenience sector by these multiples. We are seeking an urgent meeting with the OFT to explain how the implications of this process stretch into communities throughout the UK. At some point, the dominance of the multiples must be met with effective regulation, and we believe that now is the time for the government to introduce these safeguards.
“Specifically, we are asking for transparency of buying prices and a ban on below cost selling. We believe that these measures would begin to establish a fairer grocery market in which operators could compete on a more level playing field. These safeguards could be introduced now as part of a strengthened Supermarket Code of Practice, or otherwise the government will be forced to legislate when choice and diversity has all but disappeared.
“We are also asking the government to review the rules which the OFT applies in assessing acquisitions. Not only do we continue to push for the OFT to view the grocery market as one whole, but we also believe that it is time to introduce social criteria into the OFT’s decisions on these matters. The full impact of the loss of consumer choice and of the growing imbalance in buying strength between the major multiples and independent groups must be addressed.”
[img r]jacksonsstorefront.jpg[/img]With Jacksons Stores leaving the ACS, Jacksons managing director Angus Oughtred will be resigning from his position as chairman of the association.
Rae said: “Angus Oughtred has been an influential, enthusiastic and supportive member of ACS since its inception. Throughout this time, he has been respected as a top class retailer and as a man of great integrity. Since May 2003, Angus has led the Association excellently, showing strength in challenging times.”
Current vice chairman Mike Sherwood, an independent retailer who operates stores in East Anglia, will take up the chairmanship of the ACS on an interim basis.
