Key findings
> In most areas, consumers benefit from good choice and strong competition, but in some there is a lack of competition
> The big four grocers own “a significant number” of landbank sites, some of which are being held in order to stifle their competitors
> The planning system is acting as a barrier to competition by restricting new entrants into the market
> Tesco’s dominant position does not prevent other retailers from competing
> Below-cost selling and the use of vouchers are not impeding competition. However, certain practices, such as retrospective charges to suppliers, are damaging innovation in the supply chain
Proposed remedies
> Force retailers to sell land holdings in areas where competition is low
> Prohibit the use of restrictive covenants when sites are sold
> Changes to the planning system to allow the development of more supermarkets
> Introduce a competition test in planning decisions
> Tighten various provisions of the supplier code of practice and include more retailers in its remit
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