In the UK the Competition Commission has released an initial report on the groceries industry saying that the UK groceries market is delivering a good deal for consumers.

However the commission also added that in some local areas there was a lack of competition that needed to be addressed.

The report suggested ideas that could aid competition by changing the rules for the planning process for supermarkets. For example when introducing a competitiveness test to the planning permission process that takes into account existing grocery retailers in a local area.

In addition the practice of buying up land simply to prevent a rival supermarket being built there was targeted. The report suggested forcing supermarkets to sell any land which they did not develop within a certain time frame.

The report also spoke against restrictive covenants imposed by supermarkets when they sell land off to other buyers.

In addition to issues about the use and sale of land the report raised concerns about the way supermarket chains can pass on unexpected costs to their suppliers.

The report also said that Tesco, who have the biggest share of the market, is not in such a strong position that other retailers cannot compete.

United kingdom Marketing Retail