OFT re-opens supermarket probe
The Office of Fair Trading has agreed to re-open its investigation into the supermarket giants in a move which is likely to send a shiver down the spine of Tesco chief executive Sir Terry Leahy, according to the Daily Mail today.
The OFT’s embarrassing U-turn comes after a legal challenge by the Associationof Convenience Stores (ACS), amid increasing calls to curb Tesco’s dominance. The ACS believes the ‘Big Four’ supermarkets should be subject to a full Competition Commission probe, because smaller retailers are being forced out of business. Tesco, Asda, Sainsbury and Morrison could now face a further enquiry into their practices. If the OFT decides to refer the case to the Competition Commission they could be living under a cloud for more than a year.
Tesco’s share of the grocery market has topped 30 per cent and it has faced a backlash from industry and consumer groups who believe any more stores should be blocked.
