Safeway probe to look at wider issues
C-stores and non-food included in enquiry
May 1 2003
The Competition Commission is to consider a much broader range of issues than expected when ruling in bidders for Safeway.
The effect on related sectors such as the convenience store market, the pricing policies of operators not directly involved in the bidding for the UK’s third biggest supermarket chain, and the increasing importance of non-food sales will all be considered.
Sir Derek Morris, chairman of the inquiry, set out its broad scope after the four supermarket operators hoping to acquire Safeway made the pitches to a public meeting in London. He said the sector had changed considerably since his investigation in 2000.
Some of the relatively simple measures used to gauge competition in that inquiry, such as drive times and store catchments, may need to be supplemented by more complex considerations.
He suggested that the pledges of lower prices given by potential bidders, notably Tesco and Asda, might not be an advantage if they came ate the expense of reduced consumer choice.
However, Sir Derek could not say which of the areas he plans to look at will ultimately decide the issue.
The decision to consider wider implications is likely to favour Morrisons over rival bidders Tesco, Asda and Sainsbury’s.
