Waitrose urges strong OFT action on Safeway
Supermarket operator warns of impact of consolidation
January 20 2001
Supermarket operator Waitrose is urging the Office of Fair Trading to use the Safeway bidding war as an opportunity to encourage more competition in the sector.
Waitrose told the OFT in a submssion that the wholesale takeover of Safeway by another major food retailer would reduce consumer choice and reinforce the dominant position of the largest players.
It is also urging the OFT to investigate the impact of further consolidation on food suppliers and in particular the farming industry. Waitrose said further consolidation in the supermarket sector would mean less diversity and a decline in the range of choice for consumers.
Waitrose managing director Steven Esom said: “We believe that any acquisition of Safeway should only be allowed if accompanied by a substantial divestment of sites, to give more choice to consumers, and if safeguards are introduced to protect suppliers.
“We believe that our distinctive approach to food retailing, with a strong emphasis on quality and traceability, not only benefits our own customers but all other consumers as well because we set a benchmark for the rest of the industry.
”Waitrose has demonstrated its commitment to developing new shops in town centres, an approach which is in line with Government strategy.”
Esom said that Waitrose would be interested in taking over some Safeway sites if they became available. The business has 140 branches in England and Wales, with a 3.5 per cent share of the retail food market nationally and 7 per cent in the South of England. In the seven weeks to January 11, its like-for-like sales were up 5 per cent.
