Supermarket chain Sainsbury’s has said the Competition Commission must investigate the impact of planning and land holdings on competition in the grocery sector.
In its response to the Commission’s Emerging Thinking report the retailer said: “It is essential that the Competition Commission investigates the impact of planning and land holding/acquisitions, when considering the issues that might prevent, restrict or distort competition and cause consumer harm.”
It added: “We believe there is a need for the Competition Commission to introduce a competition test for new space, land bank and other property divestments, as well as mergers and acquisitions.
“That test must be based on market share, not fascia.”
Sainsbury’s claims that the growth of rival chain Tesco had significantly changed the market over the past five years and that Tesco now had a 34% share of national one-stop shop sales.
It said Tesco already had “significant national scale which drives economies that increase local barriers to entry, principally through the incentive to outbid for new space”.
“The growth of competitors to the market leader would act as a further constraint on increasing unilateral dominance,” said Sainsbury’s.
“Any rule developed to protect local competition should not prevent the chasing pack from competing with, and closing the gap on the market leader.”
