Consumer group urges full Safeway investigation
NCC concerned over threat to consumer choice
February 5 2003
The National Consumer Council has urged the Competition Commission to hold a full investigation into any bids for Safeway.
Citing the need to safeguard the interests of consumers, NCC chairman Deirdre Hutton, said: “There is a real threat that shoppers may lose out if the choice they have is reduced. Maintaining strong competition – especially at a local level – to make the market work well for consumers is what matters.
“We have particular concerns for disadvantaged consumers – lack of reliable public transport to supermarkets, for example, can limit their range of choices about where to shop. Because there are very few major players in the supermarket sector, any further consolidation of the market would raise the question of whether a form of economic regulation may be necessary.”
In a letter to the Office of Fair Trading, the NCC has called for any bids for Safeway be referred to the Competition Commission and that a full investigation into key areas is undertaken.
Areas of concern to the NCC include: protecting the interests of people living in deprived areas, whether rural or urban, so they are not disadvantaged by the proposed acquisition of Safeway; the risk of further reducing shoppers’ choice by creating local monopolies; and the impact of increasing the market power of the three main players at a national level, and difficulties faced by small competitors trying to enter the market.
