Competitors attack - Littlewoods merger

The proposed merger between Littlewoods Home Shopping and the former mail order arm of GUS has come under fire from two mail order giants.

Pinault-Printemps-Redoute, one of the world's largest retail groups, is understood to have sent objections to the Office of Fair Trading (OFT) via its UK arm, Redcats UK.

UK-based N Brown said it had also contacted the OFT, explaining: 'As part of its investigation, the OFT has contacted us and N Brown has returned its official questionnaire.'

Although neither has publicly announced its objections, each is understood to be determined to stop the merger.

A source at one mail order retailer said: 'There are a number of aspects that concern us - not least the market share and the effect the combined group will have on fulfilment.'

The deal will create a mail order colossus with a 70 per cent agency market share and merge two fulfilment giants, Reality and White Arrow.

There are also fears it will lead to thousands of job cuts in the Northwest.

However, Littlewoods argues that mail order should be considered as part of the wider retail sector, in which context it would be seen as having only 3 per cent share.

Littlewoods has presented its arguments on a video to the OFT, including contributions on market issues from Next chairman and retail grandee David Jones, outgoing Usdaw general secretary Sir Bill Connor and Verdict chairman Richard Hyman.